You are considering investing money in treasury bills and


(Real interest? rates: approximation method?) You are considering investing money in Treasury bills and wondering what the real? risk-free rate of interest is.? Currently, Treasury bills are yielding 4.5 % and the future inflation rate is expected to be 2.1 % per year. Ignoring the cross product between the real rate of interest and the inflation? rate, what is the real? risk-free rate of? interest?

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