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The risk premium on long-term government bonds is equal to: 1) the rate of return on the long-term bonds minus the inflation rate. 2) zero.
The risk premium on long-term government bonds is equal to: 1) the rate of return on the long-term bonds minus the inflation rate. 2) zero. 3) 1 percent. 4) the rate of return on the long-term bonds minus the T-bill rate. 5) the rate of return on the long-term bonds plus the corporate bond rate.
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