(1 + R) = (1 + r)(1 + h)
(1 + 0.0557) = (1 + r)(1 + 0.0179)
r = [(1 + 0.0557) / (1 + 0.0179)] – 1
r = 0.0371 or 3.71%
Assume that the inflation rate during the last year was 1.79 percent. US government T-bills had...
Question 18 (1 point) Assume that the inflation rate during the last year was 1.97 percent. US government T-bills had the nominal rates of return of 3.54 percent. What is the real rate of return for a T-bill? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: Answer units
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