<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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Answer:
x = 70°
The external angle of a triangle is equal to the sum of the 2 opposite interior angles.
120° is an external angle of the triangle, thus
x + 50 = 120 ( subtract 50 from both sides )
x = 70
Answer:
Explanation:
They’re positively charged because they lost an electron
