Question: PLEASE SHOW WORK 7. Assume that a 3-year Treasury note has no maturity premium, and that the real, risk-free rate of interest is 3 percent.

PLEASE SHOW WORK 7. Assume that a 3-year Treasury note has

PLEASE SHOW WORK

7. Assume that a 3-year Treasury note has no maturity premium, and that the real, risk-free rate of interest is 3 percent. If the T-note carries a yield to maturity of 15.1 percent, and if the expected average inflation rate over the next 2 years is 13.1 percent, what is the implied expected inflation rate during Year 3? 13.1 9.1 10.1 10.6

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