Equilibrium rate of return on treasury bond, Finance Basics

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Equilibrium rate of return on treasury bond

The real risk-free rate is 3.05%, inflation is expected to be 2.60% this year, and the maturity risk premium is zero. Ignoring any cross-product terms,

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Question 1: What is the equilibrium rate of return on a 1-year Treasury bond?

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Finance Basics: Equilibrium rate of return on treasury bond

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Finance Basics: Equilibrium rate of return on treasury bond

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