### Determine real rate of interest

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##### Reference no: EM1313981

Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

• If it becomes negative, what does that mean for the economy, for borrowers and for investors.
• If the \"Bailout\" goes forward, what is that likely to do to rates?

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Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

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