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Suppose 1-year T-bills currently yield 5.00% and the future inflation rate is expected to be constant at 3.10% per year. What is the real risk-free

Suppose 1-year T-bills currently yield 5.00% and the future inflation rate is expected to be constant at 3.10% per year. What is the real risk-free rate of return, r*? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.

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Suppose 1-year T-bills currently yield 5.00% and the future inflation rate is expected to
be constant at 3.10% per year. What is the real risk-free rate of return, r*? Disregard
cross-product...

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