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Assume that today is January 1, 2006. A 5-year corporate bond maturing on January 1, 2011, has a yield to maturity o Corporate bond maturing

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Assume that today is January 1, 2006. A 5-year corporate bond maturing on January 1, 2011, has a yield to maturity o Corporate bond maturing and A 10-year on January 1, 2016, with the same default risk premiums the corporate bond has a yield to maturity of 8.2%. The annual real risk-free rate, r is expected to remain constant at 2%. The maturity risk premium equals 0.1% (t 1), where t- the bond's maturity in years. Inflation is expected to average 2% per year for the next five years. What is the average annual expected inflation between January 2008 and January 2013? A Assume that today is January 1, 2006. A 5-year corporate bond maturing on January 1, 2011, has a yield to maturity o Corporate bond maturing and A 10-year on January 1, 2016, with the same default risk premiums the corporate bond has a yield to maturity of 8.2%. The annual real risk-free rate, r is expected to remain constant at 2%. The maturity risk premium equals 0.1% (t 1), where t- the bond's maturity in years. Inflation is expected to average 2% per year for the next five years. What is the average annual expected inflation between January 2008 and January 2013? A

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