Question
Suppose the risk-free nominal interest rate on a 1-year Canadian Treasury bill (T-bill) is 6% per year, and the expected rate of inflation is 4%
Suppose the risk-free nominal interest rate on a 1-year Canadian Treasury bill (T-bill) is 6% per year, and the expected rate of inflation is 4% per year. What is the expected real rate of return on the T-bill?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
