0 6. 7. eBook Due to a recession, expected Inflation this year is only 4.75%. However, the Inflation rate in Year 2 and thereafter is expected to be constant at some level above 4.75%. Assume that the expectations theory holds and the rest risk-free rate (4") 3.5% of the yield on 3-year Treasury bonds equals the 1-year yield plus 1.5%, what inflation rate is expected after Year 17 Round your answer to two decimal places 171.88 8. 9. 10. Hide Feedback 11. O Incorrect