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Question 15 1 pts Suppose the rate of return on a 10-year T-bond is 5.35%, the expected average rate of inflation over the next 10

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Question 15 1 pts Suppose the rate of return on a 10-year T-bond is 5.35%, the expected average rate of inflation over the next 10 years is 2.0%, the MRP on a 10-year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury security. Given this information, what should the yield be on a 10-year TIPS? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average O 2.38% O 3.04% 2.99% O 2.9496 2.45%

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