Consider the following table for a seven-year period: Year 23456N 7 Returns U.S. Treasury Bills 4.00% 3.85 4.75 5.17 2.97 1.85 1.58 Inflation. -1.26% -2.40 -1.30 0.72 -6.54 -9.46 -1.41 What was the average real return for Treasury bills for this time period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
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Consider the following table for a seven-year period:
Year
1
2
34467.
5
U.S. Treasury
Bills
4.00%
3.85
4.75
5.17
2.97
1.85
1.58
Returns
Average real return.
Inflation
-1.26%
-2.40
-1.30
0.72
-6.54
-9.46
-1.41
What was the average real return for Treasury bills for this time period?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g...
32.16.
%
Transcribed Image Text:Consider the following table for a seven-year period: Year 1 2 34467. 5 U.S. Treasury Bills 4.00% 3.85 4.75 5.17 2.97 1.85 1.58 Returns Average real return. Inflation -1.26% -2.40 -1.30 0.72 -6.54 -9.46 -1.41 What was the average real return for Treasury bills for this time period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g... 32.16. %
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