You have been told that the yield to maturity on 3-month treasury bills is 4% and t

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You have been told that the yield to maturity on 3-month treasury bills is 4% and t he current inflation rate is 2%. Estimate the real rate of interest.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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