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Check My Work (3 remaining) eBook Due to a recession, expected Inflation this year is only 3.75%. However, the inflation rate In Year 2 and

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Check My Work (3 remaining) eBook Due to a recession, expected Inflation this year is only 3.75%. However, the inflation rate In Year 2 and thereafter is expected to be chant at some level above 3.79 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 2.0%, what inflation rate is expected after Year 17 Round your answer to two decimal places

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