Question
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 6.4% r2 = 7.0% r3 = 7.7% r4
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 6.4% r2 = 7.0% r3 = 7.7% r4 = 8.5%
Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years?
Answers are not 4.31/4.9/5.59/6.37
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
