Using the approximate nominal interest rate equation and


From 1991 to? 2000, the U.S. economy had an annual inflation rate of around 3.50?%. The historical annual nominal? risk-free rate for this same period was around 5.73?%. Using the approximate nominal interest rate equation and the true nominal interest rate? equation, compute the real interest rate for that decade.

What is the estimated real interest rate using the approximate nominal interest rate equation for that? decade?

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Finance Basics: Using the approximate nominal interest rate equation and
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