Question: If the real Yield on a 5 -year TIPS is 2.00 % and the nominal yield on a 5 -year nonindexed Treasury bond is equal
If the real Yield on a 5-year TIPS is 2.00% and the nominal yield on a 5-year nonindexed Treasury bond is equal to 3.85%, what is the annual expected inflation for the next 5years? Both securities are highly liquid, and adjustment is equal to zero.
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