<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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The Treaty of Paris.. I think that would be the answer.
Is this a true or false question of are you just giving a fact?
It should be noted that the number of days that will be taken to complete the sales target will be 27 days.
<h3>How to compute the sales target</h3>
From the complete information, the following can be deduced:
a + b = 1/30
b + c = 1/40
a + c = 1/60
Using the rules of algebra, b = 5/240, a = 3/240.
a + c = 1/60
3/240 + c = 1/60
c = 1/60 - 3/240
c = 1/240
Therefore, the 3 can do 9/240 in a day. The number of days required will be:
= 240/9 = 27 days
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