Problem 9-23 Expected Inflation Rates (LO4, CFA4)

Consider the following spot interest rates for maturities of one, two, three, and four years.

r1 = 6.2%

r2 = 6.7%

r3 = 7.4%

r4 = 8.2%

Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

I1		%
I2		%
I3		%
I4		%