According to the may 19th edition of the wsj 6 month cds


According to the May 19th edition of the WSJ, 6 month CDs were yielding 1.65% (nominal rate of interest). If risk were considered to be 0 (zero) and inflation was expected to average 0.85% for the next two years, what should one conclude the real rate of interest to be?

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Finance Basics: According to the may 19th edition of the wsj 6 month cds
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