Question 6 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? A) 8.18% B 6.65% C) 5.72% D E 5.32% 5.52% 2 Points Last saved 6:35:11 PM

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? 8.18% (B) 6.65% 5.72% (D) 5.32% (E) 5.52% 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? 8.18% (B) 6.65% 5.72% (D) 5.32% (E) 5.52%