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Treasury bills are currently paying 7 percent and the

Calculating Real Rates of Return

Treasury bills are currently paying 7 percent and the inflation rate is 3.2 percent.

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

Approximate real rate %

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

Exact real rate %

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