Suppose that on January 1, 2023, the price of a one-year Treasury bill with a face value of $1,000 is $940.01. Investors expect that the inflation rate will be 3% during , but at the end of the year, the inflation rate turns out to have been 2%. he nominal interest rate on the bill (measured as the yield to maturity) is enter your response here %. (Round your response to two decimal places.)

Suppose that on January 1, 2023, the price of a one-year Treasury bill with a face value of $1,000 is $940.01. Investors expect that the inflation rate will be 3% during , but at the end of the year, the inflation rate turns out to have been 2%. he nominal interest rate on the bill (measured as the yield to maturity) is enter your response here %. (Round your response to two decimal places.)

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 12SQ

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