5. The yield-to-maturity (YTM) of 20-year Treasury Bond is 3.00% and the YTM of 20-year TIPS is 0.98%. Economists expect the US labor supply growth rate (per annum) to be 1.0% while the labor productivity growth rate (per annum) to be 2.0%. A forward looking estimate expects dividend yield (per annum) of 2.1% and reinvestment return (per annum) of 0.1%. The overall market valuation is efficient. Given the information above, the macroeconomic model estimate of US equity market risk premium is closest to A. 4.26% B. 7.26% C. 6.26% 5. The yield-to-maturity (YTM) of 20-year Treasury Bond is 3.00% and the YTM of 20-year TIPS is 0.98%. Economists expect the US labor supply growth rate (per annum) to be 1.0% while the labor productivity growth rate (per annum) to be 2.0%. A forward looking estimate expects dividend yield (per annum) of 2.1% and reinvestment return (per annum) of 0.1%. The overall market valuation is efficient. Given the information above, the macroeconomic model estimate of US equity market risk premium is closest to A. 4.26% B. 7.26% C. 6.26%