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d. Your company has a major manufacturing facility in Brazil where the pure rate of interest is 4% and the yield on a 15-year maturity
d. Your company has a major manufacturing facility in Brazil where the pure rate of interest is 4% and the yield on a 15-year maturity Brazilian government bond is 10%. In the United States, the pure rate is 3% and the 15-year Treasury bond yields 4.5%. Assuming investors consider both government bonds to be risk free, what is the difference in anticipated 15-year inflation rates between the two countries
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