Given the following data, find the expected rate of inflation

during the next year. $$ r$*=$ real risk$-$free rate $=4\mathrm{.}60\%.$

Maturity risk premium on $10-$year T$-$bonds $=2\%.$ It is zero on $1-$year

bonds, and a linear relationship exists. $$ Default risk premium on

$10-$year, A$-$rated bonds $=1\mathrm{.}5\%.$ Liquidity premium $=0\%.$ Going

interest rate on $1-$year T$-$bonds $=7\mathrm{.}30\%.$

Given the following data, find the expected rate of inflation during the next year.

$r^{**}=$ real risk$-$free rate $=2\mathrm{.}80\%.$

Maturity risk premium on $10-$year T$-$bonds $=2\%.$ It is zero on $1-$year bonds, and a linear relationship exists.

Default risk premium on $10-$year, A$-$rated bonds $=1\mathrm{.}5\%.$

Liquidity premium $=0\%.$

Going interest rate on $1-$year $T-$bonds $=5\mathrm{.}80\%.$

$1\mathrm{.}8\%$

$2\mathrm{.}7\%$

$3\mathrm{.}0\%$

$2\mathrm{.}4\%$

$2\mathrm{.}1\%$