A 5-year Treasury bond currently offers a 18% rate of return. A 6-year Treasury bond offers a
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A 5-year Treasury bond currently offers a 18% rate of return. A 6-year Treasury bond offers a 21% rate of return. The inflation rate in fifth year is 63 %.Under the expectations theory, what rate of return do investors expect a four year Treasury bond to pay during the fifth year?
calculate and provide complete steps of the real rate of return for fifth year?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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