Suppose the risk-free nominal interest rate on a 1-year Canadian Treasury bill (T-bill) is 6% per year,

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Suppose the risk-free nominal interest rate on a 1-year Canadian Treasury bill (T-bill) is 6% per year, and the expected rate of inflation is 4% per year. What is the expected real rate of return on the T-bill?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Posted Date: Jan 17, 2021 03:05 PM

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Suppose the risk-free nominal interest rate on a 1-year Canadian Treasury bill (T-bill) is 6% per year,

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International Financial Management

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