Economists have forecast the following yearly inflation rates over the next 10 years: Year .........Inflation Rate 1
Question:
Year .........Inflation Rate
1 .............3.0
2 .............2.5
3–6 .............4.0
7–10 ............3.0
Calculate the inflation components of interest rates on new bonds issued today with terms varying from one (1) to ten (10) years.
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1year 30 2year 3 252 275 3year 3 25 43 317 4year 3 25 4 44 ...View the full answer
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