Question: Suppose 2-year Treasury bonds yield 4.1%, while 1-year bonds yield 3.2%. r* is 1.5%, and the maturity risk premium is zero. What is the expected

Suppose 2-year Treasury bonds yield 4.1%, while 1-year bonds yield 3.2%. r* is 1.5%, and the maturity risk premium is zero. What is the expected inflation rate in Year 2? Round your answer to two decimal places

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