Question
Assume the yield on a 7-year Treasury note is 4.91 percent and the yield on 7-year TIPS is 1.45 percent. Calculate the implied expected rate
Assume the yield on a 7-year Treasury note is 4.91 percent and the yield on 7-year TIPS is 1.45 percent. Calculate the implied expected rate of inflation for the next 7 years. You should use the Fisher equation.
Round the answer to two decimal places in percentage form.
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National Finance A Chinese Perspective
Authors: Yunxian Chen, Heming Yong
1st Edition
9813360917, 978-9813360914
