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please show work uppose 2-year Treasury bonds yield 3.8%, while 1-year bonds yield 2.8%, is is 2%, and the maturity risk premium is aera, a.
please show work
uppose 2-year Treasury bonds yield 3.8%, while 1-year bonds yield 2.8%, is is 2%, and the maturity risk premium is aera, a. Using the expectations theory, what is the yield on a 1 -year bond, 1 year from now? Calculate the yield using a geometnc ayerage. Do not round intermediate calculations. Round your answer to two decimal places. d. b. What is the expected inflation rate in Year.1? Year 2? Do not round intermediate calculations. Round your answers to two decumal places. Expected inflation rate in Year 1t Expected inflation rate in Year 2 Step by Step Solution
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