<u>The equilibrium rate of return on a 1 year T-bond is 5%</u>
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<h3>Equilibrium rate</h3>
This is the interest rate at which the demand meet the supply at a particular point.
<h3>Equilibrium rate of return</h3>
This is the sum of dividend yield plus the rate of capital gains.
we can also say that the equilibrium rate for a 1 year T-bond in this case is the sum of the real risk free rate and the expected inflation.
Data
- Real risk free rate = 3%
- Expected inflation = 2%
Hence, the equilibrium rate of return will be 3% + 2% = 5%.
From the above, the equilibrium rate of return is 5%
Learn more on rate here
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Earth or the galaxy. Im sorry if i’m wrong But this is my answer
Answer:
Tom continues whitewashing the fence when along comes Ben Rogers, eating an apple and playing at running an imaginary steamboat. Tom pretends to be wholly absorbed in his task. When Ben teases him about having to work, Tom contends that whitewashing is a privilege, and one that Aunt Polly would only trust to him. i think double check
Explanation:
Answer:
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