What is the actual real interest rate given these numbers, Accounting Basics

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What is the actual real interest rate given these numbers

Problem

Suppose the nominal interest rate is 5%, the expected inflation rate is 5%, and the actual inflation rate turns out to be 4%.

a) What is the expected real interest rate?
b) What is the actual real interest rate?
c) Given these numbers, are borrowers better or worse off than expected? Briefly explain.

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Accounting Basics: What is the actual real interest rate given these numbers

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Accounting Basics: What is the actual real interest rate given these numbers

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