“Real risk-free interest rate = 1.2% Current inflation rate = 2.2% Long-term inflation expectation = 2.6%” Institute, CFA. Level III 2013 Volume 3 Capital Market Expectations, Market Valuation, and Asset Allocation. John Wiley & Sons (P&T), 6/18/2012. page(104). Given this data, what should be the 1-year T-note rate? I calculated 1.2+2.2=3.4%, textbook says 1.2+2.6=3.8%. Why?