# Suppose that the real rate of return on T-bills is 5% and the inflation rate is estimated to be 2.4%.

## Question:

Suppose that the real rate of return on T-bills is 5% and the inflation rate is estimated to be 2.4%. What is the nominal rate of return on the T-bills?

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**Related Book For**

## Principles Of Managerial Finance

**ISBN:** 9781292018201

14th Global Edition

**Authors:** Lawrence J. Gitman, Chad J. Zutter

**Question Details**

Chapter #

**6**- Interest Rates and Bond ValuationSection: Warm-Up-Exercises

Problem: 1

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