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How to calculate approximate real rate of interest

04/10/2021 Client: muhammad11 Deadline: 2 Day

Treasury bills are currently paying 5 percent and the inflation rate is 2.7 percent.

a.
What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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