Calculate the real rate of inflation of interest


Please use approximation method to find the expected rate of return on a 1 year Treasury bill.

If the real risk- free rate of interest is 4.1% and the rate of inflation is expected to be constant at a level of 3.4% , what would you expect 1-year treasury bills to return if you ignore the cross product between the real rate of inflation of interest and the inflation rate ?

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Finance Basics: Calculate the real rate of inflation of interest
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