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If the real risk-free rate of interest is 5.4 %5.4% and the rate of inflation...

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Finance

If the real risk-free rate of interest is

5.4 %5.4%

and the rate of inflation is expected to be constant at a level of

3.2 %3.2%,

what would you expect 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation rate?If the real risk-free rate of interest is

5.4 %5.4%

and the rate of inflation is expected to be constant at a level of

3.2 %3.2%,

what would you expect 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation rate?

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