=+P6–1 Interest rate fundamentals: Real and nominal rates of return Nick is a product manager at an investment banking firm. When his supervisor asks him to price an investment product, Nick conducted some research to obtain market information.

According to his research, the rate of return of 3-month Treasury bills is 6% and the expected inflation rate now stands at 3%. Nick also observed that the risk premium of an investment product with similar characteristics in the market is 5%. Based on the information, what should the nominal rate of return of Nick’s investment product be?