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Economists at your company predict the following expected inflation rates: 2% at t=1; 2.3% at t=2; 3.5% at t=3; and 4% thereafter. Find inflation premium
Economists at your company predict the following expected inflation rates: 2% at t=1; 2.3% at t=2; 3.5% at t=3; and 4% thereafter. Find inflation premium for a 30-year corporate bond
a. 115.8
b. 3.86
c. 11.8
d. 3.93
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