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Consider the following spot interest rates for maturities of one, two, three, and four years. 1 = 4.0% r2 = 4.5% 3 = 5.2% r4
Consider the following spot interest rates for maturities of one, two, three, and four years. 1 = 4.0% r2 = 4.5% 3 = 5.2% r4 = 6.0% Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is not complete. 11 12 5.00 X % 5.81 X % 6.68 % 13 14 %
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