Question: Problem 9-23 Expected Inflation Rates (LO4, CFA4) Consider the following spot interest rates for maturities of one, two, three, and four years. r 1 =

Problem 9-23 Expected Inflation Rates (LO4, CFA4)

Consider the following spot interest rates for maturities of one, two, three, and four years.

r₁ = 6.2%

r₂ = 6.7%

r₃ = 7.4%

r₄ = 8.2%

Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)


I1		%
I2		%
I3		%
I4		%

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