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    Fundamentals of Corporate Finance Study Set 22
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    Exam 7: Interest Rates and Bond Valuation
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    The Current Real Rate Is 1
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The Current Real Rate Is 1

Question 218

Question 218

Multiple Choice

The current real rate is 1.25% and the inflation rate is 1.40%. What rate would you expect to see on a Treasury bill?


A) 1.75%
B) 2.65%
C) 2.67%
D) 2.71%
E) 2.73%

Correct Answer:

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