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Treasury Bills, 90 days 4.20% Commercial Paper, 90 days 4.84% Treasury Bill, 1 year 4.67% Treasury Note, 2 year 5.25% Corporate Bond AA, 20 year

Treasury Bills, 90 days 4.20%

Commercial Paper, 90 days 4.84%

Treasury Bill, 1 year 4.67%

Treasury Note, 2 year 5.25%

Corporate Bond AA, 20 year 8.23%

Municipal Bond AA, 20 year 6.42%

Expected Annual Inflation Rate 3.00%

Question: With reference to the above data, what is the approximate expected pre-tax real rate of return on the one-year Treasury bill?

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