For example, monthly capitalization with annual rate of interest means that the compounding frequency is 12, with time periods measured in years. The effect of compounding depends on: The nominal interest rate which is applied and. The frequency interest is compounded.
Christopher columbus is it?
<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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brainly.com/question/7040405
Answer:
5+5=10
Explanation:
Now to get that answer you need two hands make sure they both have five fingers now put your hands toughter now then count the fingers and if you count them there should be 10 unless you ate one yesterday like I did.
