Answer:
12.48%
Step-by-step explanation:
The real rate is 1.9%
= 1.9/100
= 0.019
The inflation rate is 3.1%
= 3.1/100
= 0.031
Therefore the rate on the treasury bill can be calculated as follows
= (1+0.031)(1+0.019)-1
= (1.031×1.019)-1
= 1.1248-1
= 0.1248×100
= 12.48%
Hence the rate that is expected to be seen on the treasury bill is 12.48%