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The real risk - free rate is 3 . 0 5 % , inflation is expected to be 3 . 6 0 % this year,
The real riskfree rate is inflation is expected to be this year, and the maturity risk premium is zero. Ignoring any crossproduct terms, ie if averaging is required, use the arithmetic average, what is the equilibrium rate of return on a year Treasury bond?
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