1) Let say both Google and Kroger sell short-term corporate papers to investors. Google yield to investors is 3% and Kroger's is 4.3%.

Both companies sell three months papers, what factor explains this difference?

2) The current risk free rate on treasury bills is 2.40%. Inflation is 1.3%.

a) What is the real rate of return on treasury bills?

b) If investor saw calculated number two from above, would he be pleased or not?