From Bloomberg 2/16/18 Treasury Yields NAME COUPON PRICE YIELD

GT2:GOV 2 Year 2.00 99.65 2.19%

GT5:GOV 5 Year 2.38 98.87 2.62%

GT10:GOV 10 Year 2.75 99.02 2.86%

GT30:GOV 30 Year 3.00 97.80 3.11%

Treasury Inflation Protected Securities (TIPS) NAME COUPON PRICE YIELD

GTII5:GOV 5 Year 0.13 98.38 0.52%

GTII10:GOV 10 Year 0.50 97.59 0.75%

GTII20:GOV 20 Year 3.38 133.83 0.83%

GTII30:GOV 30 Year 1.00 100.58 0.98%

A. What is the market expectation for the annual rate of inflation over the next 5 years? What is the market expectation for the annual rate of inflation over the next 10 years?