The real risk-free rate is 1.24%, inflation is expected to be 7.7% this year, and the...

 

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The real risk-free rate is 1.24%, inflation is expected to be 7.7% 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.) The real risk-free rate is 1.24%, inflation is expected to be 7.7% 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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To calculate the equilibrium rate of return on a 1year Treasury security we ... View the full answer