In​ 2009, U.S. Treasury yielded​ 0.1%, while inflation was​ 2.7%. What was the real rate in​ 2009?   A. −​2.8%   B. ​2.6%   C. −​2.6%   D. 2.8%

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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In​ 2009, U.S. Treasury yielded​ 0.1%, while inflation was​ 2.7%. What was the real rate in​ 2009?
 
A.
−​2.8%
 
B.
​2.6%
 
C.
−​2.6%
 
D.
2.8%
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