To find the nominal interest rate (the rate expected on a Treasury bill), you can use the Fisher equation:

$(1 + i) = (1 + r)(1 + \pi)$

Where:

• $i$ is the nominal interest rate (the rate you expect to see on the Treasury bill),
• $r$ is the real interest rate (3.75% or 0.0375),
• $\pi$ is the inflation rate (1.5% or 0.015).

Let's calculate $i$:

$1 + i = (1 + 0.0375)(1 + 0.015)$

$1 + i = (1.0375)(1.015) = 1.05306$

$i = 1.05306 - 1 = 0.05306$

Converting this to a percentage:

$i = 5.31\%$

So, the nominal interest rate you would expect to see on the Treasury bill is 5.31%.

Would you like further details or have any questions?

---

Here are some related questions:

1. How does the Fisher equation relate real and nominal interest rates?
2. How would the Treasury bill rate change if inflation were higher?
3. What assumptions does the Fisher equation rely on?
4. Can nominal interest rates be negative?
5. How do inflation expectations impact bond prices?

Tip: Always adjust for inflation when comparing returns over time, as real interest rates account for the eroding effect of inflation on purchasing power.