The real risk-free rate is 3.55%,inflation is expected to be 2.85% this year,and the maturity risk premium is zero.Taking account of the cross-product term,i.e. ,not ignoring it,what is the equilibrium rate of return on a 1-year Treasury bond? (Round your final answer to 3 decimal places. )
A) 6.111%
B) 6.566%
C) 7.216%
D) 6.501%
E) 5.331%

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The Answer of The real risk-free rate is 3.55%,inflation is expected to be 2.85% this year,and the maturity risk premium is zero.Taking account of the cross-product term,i.e. ,not ignoring it,what is the equilibrium rate of return on a 1-year Treasury bond? (Round your final answer to 3 decimal places. )
A) 6.111%
B) 6.566%
C) 7.216%
D) 6.501%
E) 5.331%

The Real Risk-Free Rate Is 3