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Given from Daily Treasury Real Yield Curve Rates 7 YR 10 YR 20 YR DATE 09/11/20 SYR -1.27 30 YR -0.33 GIVEN FROM Daily Treasury

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Given from Daily Treasury Real Yield Curve Rates 7 YR 10 YR 20 YR DATE 09/11/20 SYR -1.27 30 YR -0.33 GIVEN FROM Daily Treasury Yield Curve Rates 10***** Date 09/11/20 1 Mo 0.10 2 Mo 0.11 0.11 0.12 Yr Y Y Y Y 0.1 0.1 0.1 0.2 0.4 3 6 6 S 0.67 121 12 Use the appropriate 10-year interest rate data to calculate the current expected inflation premium on average into the future: Using the 1 year, 2 year and three year data from the Daily Treasury Yield Curve Rates data, calculate the two forward rates (FWD) for a one-year investment one year from now AND the one-year investment two years from now. Given your current spot rate and the two FWD rates calculated, provide an estimate of expected inflation for each of these three years if the real rate is expected to be 1.8%. Given from Daily Treasury Real Yield Curve Rates 7 YR 10 YR 20 YR DATE 09/11/20 SYR -1.27 30 YR -0.33 GIVEN FROM Daily Treasury Yield Curve Rates 10***** Date 09/11/20 1 Mo 0.10 2 Mo 0.11 0.11 0.12 Yr Y Y Y Y 0.1 0.1 0.1 0.2 0.4 3 6 6 S 0.67 121 12 Use the appropriate 10-year interest rate data to calculate the current expected inflation premium on average into the future: Using the 1 year, 2 year and three year data from the Daily Treasury Yield Curve Rates data, calculate the two forward rates (FWD) for a one-year investment one year from now AND the one-year investment two years from now. Given your current spot rate and the two FWD rates calculated, provide an estimate of expected inflation for each of these three years if the real rate is expected to be 1.8%

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