The real risk-free rate is 355 inflation is expected to be


The real risk-free rate is 3.55%, inflation is expected to be 2.55% this year, and the maturity risk premium is zero. Taking account of the cross-product term, i.e., not ignoring it, what is the equilibrium rate of return on a 1-year Treasury bond?

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Financial Management: The real risk-free rate is 355 inflation is expected to be
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