The nominal interest rate on the bill is

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Suppose that on January 1, 2017, the price of a one-year Treasury bill-with a face value of $1000- is $945.37.

Investors expect that the inflation rate will be 5% during 2017, but at the end of the year, the inflation rate turns out to have been 4%.

The nominal interest rate on the bill is (Round your response to two decimal places.)

Reference no: EM132012826

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