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Economists have forecast the following yearly inflation rates over the next 10 years: Year. Inflation Rate 1 2.0 2 3.5 3-6 3.8 7-10 4.5 Calculate

Economists have forecast the following yearly inflation rates over the next 10 years:

Year. Inflation Rate

1 2.0

2 3.5

3-6 3.8

7-10 4.5

Calculate the inflation components of interest rates on new bonds issued today for the year 5 and year 8

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