The answer for the equation should be x=2
You distribute the 5(x-1) to get 5x-5+3x= 7(x+1) . Next distribute 7(x+1). That will give you 8x-5= 7x+7. Subtract 7x and you get x-5=7. Subtract -5 and you get x=2
<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%
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sometimes people apply early in 10th grade, or when they're GPA is quite high they would apply (high school years).
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^^