Question: The yields for Treasuries with differing maturities, including an estimate of the real rate of interest, on a recent day were as shown in the

The yields for Treasuries with differing maturities, including an estimate of the real rate of interest, on a recent day were as shown in the following table:

Use the information in the preceding table to calculate the inflation expectation for eachmaturity.

Maturity ield Real rate of interest 3months 1.41% 6 months 1.71 2 years 268 3 years 3.01 5 years 3.70 10 years 451 30years 5.25 0.80% 0.80 0.80 0.80 0.80 0.80 0.80

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