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Need help with step by step instructions in how to get answer The real risk-free rate is 3.55%, inflation is expected to be 2.85% this
Need help with step by step instructions in how to get answer
The real risk-free rate is 3.55%, inflation is expected to be 2.85% this year, and the maturity risk premium is zero. Taking account of the cross-product term, i.e., not ignoring it, what is the equilibrium rate of return on a 1- year Treasury bond? (Round your final answer to 3 decimal places.)
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