Find the equilibrium rate of return on treasury bond

Reference no: EM132069760

Question: The real risk-free rate is 3.05%, inflation is expected to be 3.60% this year, and the maturity risk premium is zero. Ignoring any cross-product terms, i.e., if averaging is required, use the arithmetic average, what is the equilibrium rate of return on a 1-year Treasury bond? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132069760

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