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1. Briefly explain what is the equity premium puzzle, without using any equations 2. You have just purchased a 10-year zero-coupon bond with a yield

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1. Briefly explain what is the equity premium puzzle, without using any equations 2. You have just purchased a 10-year zero-coupon bond with a yield to maturity of 10% and a face value of S1,000. What would your rate of return be if you sell the bond at the end of the year? Assume that the yield to maturity on the bond is 11% at the time you sell

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