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Question 3 (3 points) Suppose the real risk-free rate is 2.96%, inflation is expected to be 3.75% this year and the maturity risk premium is

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Question 3 (3 points) Suppose the real risk-free rate is 2.96%, inflation is expected to be 3.75% this year and the maturity risk premium is zero. Ignoring any cross-product terms, what is th- equilibrium rate of return on a 1-year Treasury bond? a) 5.80% b) 6.09% c) 6.39% d) 6.71% Next Page Page 1 of 1

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