Question 4 1 point d Assume that the inflation rate during t

Question 4 (1 point) d Assume that the inflation rate during the last year was 1.48 percent. US government T-bills had the nominal rates of return of 3.78 percent. What is the real rate of return for a T-bill? Round the answer to two decimal places in percentage form. (Write the percentage sign in the \"units\" box)

Solution

Nominal rate = Real rate + Inflation

Substituting the values in the equation

3.78 = Real return + 1.48

Real return = 2.30%