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Suppose that the expected rate of inflation over the next 5 years is 8% and 5-year Treasury notes have an interest rate of 10.3%. In
Suppose that the expected rate of inflation over the next 5 years is 8% and 5-year Treasury notes have an interest rate of 10.3%. In this scenario, what is the interest rate on 5-year TIPS?
a) 8.3%
b)18.3%
c)2.3%
d)8%
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