Question
The real risk-free rate is 1.56%, inflation is expected to be 3.88% this year, and the maturity risk premium is zero. What is the
The real risk-free rate is 1.56%, inflation is expected to be 3.88% this year, and the maturity risk premium is zero. What is the equilibrium rate of return on a 1-year Treasury security? (Express your answer as a percent and round your final answer to 2 decimal places.)
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
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