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Due to a recession expected inflation this year is only 3% however the inflation rate and Year 2 thereafter is expected to be consistent at

Due to a recession expected inflation this year is only 3% however the inflation rate and Year 2 thereafter is expected to be consistent at some level above 3%. Assume that the expectations theory holds and the real risk free rate is 2%. If the yield on 3 year Treasury Bonds equals the one year yield plus 2%, What inflation rate is expected afternYear 1?

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