I'm currently reading "Financial Markets and Institutions" by Cornett and Saunders.
On the section on interest rates, the real interest rate is defined as:
A real interest rate is the interest rate that would exist on a security if no inflation were expected over the holding period (e.g., a year) of a security".
What does this mean? Isnt the real interest rate simply the nominal rate minus inflation? Why is it defined as quoted above? What am I missing?
Thanks in advance for helping me understand this wording better.