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Assume that the real risk-free rate is 1.9% and that the maturity risk premium is zero. Also assume that the 1-year Treasury bond yield is
Assume that the real risk-free rate is 1.9% and that the maturity risk premium is zero. Also assume that the 1-year Treasury bond yield is 5.4% and a 2-year bond yields 6.2%. What is the 1-year interest rate that is expected for Year 2? Round your answer to two decimal places. What inflation rate is expected during Year 2? Round your answer to two decimal places
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