The real rate of interest is 2%, average inflation is expected to be 1.5%, the MRP is .9, the DRP is .2% and the LP is .5%. What should be the nominal interest rate on a corporate bond? What if, The real rate of interest is 2%, average inflation is expected to be 1.5%, the MRP is .9, the DRP is .2% and the LP is .5%. What should be the nominal interest rate on a Government bond?