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3. Assume today's U.S. Treasury Yield Curve is given below. You can use this to estimate the average rate of inflation for the next thirty

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3. Assume today's U.S. Treasury Yield Curve is given below. You can use this to estimate the average rate of inflation for the next thirty years as the difference between the nominal rate on a 30- Year Treasury bond and the Inflation Indexed Treasury bond- (often called Treasury Inflation Protected bonds or TIPs-Real Rate). The shape of the Yield Curve also tells us something about future interest rates Treasury Yield Curve Choose a date 2018 SEPT 14 1.0 Select to compare danes Enter comparison date 2.0 NOMINAL REAL 09/14 2018 Update Chart Go 1.0 Key Sept 14, 2018 NOMNAL Sept 14, 2018 REAL Select Da NOMINALO Select Dae REAL MO 3MD SMO SYR2YRSYR SYR TYR 10YR 20YR 30YR Nominal Rates: 0R1 2.5620 .0R: 2.78% oR3-2.85% oR4-2.87% oRs 2.90% oR7-2.9620w0RO 2.990 odR20 3.07% oR30-3.13% Real Rates: ors=0.90%.orz =0.90% or10:0.89% or20-0.95% or30=1.00% Rs 2.93% Your 27 year old client wants to retire when he is 70 years old, and have a retirement income eauivalent to S8.000 per month in todav's (inflation adiusted) dollars. To estimate the market

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