The risk-free rate is the rate of return you get on the most risk-free bond e.g. bonds and treasury bills issued by the central government. The interest you earn is the nominal rate of interest and when you deduct inflation you get a real rate of interest.

The risk-free rate is the rate of return you get on the most risk-free bond e.g. bonds and treasury bills issued by the central government. The interest you earn is the nominal rate of interest and when you deduct inflation you get a real rate of interest.