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Compare the yield on the 'regular' 5-year and 10-year Treasury notes with the yield on the inflation-indexed 5-year and 10-year Treasury notes www.bloomberg.com/markets/rates/index.html ) The
Compare the yield on the 'regular' 5-year and 10-year Treasury notes with the yield on the inflation-indexed 5-year and 10-year Treasury notes www.bloomberg.com/markets/rates/index.html ) The difference between the yield on the regular versus the inflation-indexed bonds can be interpreted as market expectations of inflation. According to this interpretation, what is the average expected inflation rate over the next 5, and next 10 years? Calculate. Show your work.
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