B eBook Due to a recession, expected Inflation this year is only 3.25%. However, the Inflation rate in Year 2 and thereafter is expected to be constant at some level above 3.25%. Assume that the expectations theory holds and the real risk-free rate (r) is 2.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 1.0%, what Inflation rate is expected after Year 17 Round your answer to two decimal places. %