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3. Consider the following term structuret of spot (nominal) interest rates: Suppose that the real interest rate is expected to remain at 2% p.a., semi-annual
3. Consider the following term structuret of spot (nominal) interest rates: Suppose that the real interest rate is expected to remain at 2% p.a., semi-annual compounding forever. What are inflation rates that you expect over the next six months (i.e., month 1 to month 6) and the following six months (i.e., month 7 to month 12 )
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