Question: yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. % What inflation rate is expected during Year

 yield using a geometric average. Do not round intermediate calculations. Round

yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. % What inflation rate is expected during Year 2? Do not round intermediate calculations. Round your answer to two decimal places. % Comment on why the average interest rate during the 2-year period differs from the 1-year interest rate expected for Year 2. I. The difference is due to the fact that the maturity risk premium is zero. III. The difference is due to the fact that there is no liquidity risk premium

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