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Given 1 year spot rate of 0.10 and 2 year spot rate of 0.24 and 3 year spot rate of 0.34, as well as forward

  1. Given 1 year spot rate of 0.10 and 2 year spot rate of 0.24 and 3 year spot rate of 0.34, as well as forward rate for year 2 of 0.40, calculate the expected inflation premiums over the next three years. Assume the RR (real rate) = 2%.

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