If the yield to maturity for a par value TIPS bond with 15 years to maturity...
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If the yield to maturity for a par value TIPS bond with 15 years to maturity is 2%, and the yield to maturity of a U.S Treasury note with 15 years is 4.25%, A reasonable expected annual rate of inflation over the next 15 years is 2.25% ○ A reasonable expected annual rate of inflation over the next 15 years is -2.25%. None of the answers are correct ○ A reasonable expected annual rate of inflation over the next 15 years is -1.25%. ○ A reasonable expected annual rate of inflation over the next 15 years is 1.25% If the yield to maturity for a par value TIPS bond with 15 years to maturity is 2%, and the yield to maturity of a U.S Treasury note with 15 years is 4.25%, A reasonable expected annual rate of inflation over the next 15 years is 2.25% ○ A reasonable expected annual rate of inflation over the next 15 years is -2.25%. None of the answers are correct ○ A reasonable expected annual rate of inflation over the next 15 years is -1.25%. ○ A reasonable expected annual rate of inflation over the next 15 years is 1.25%
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