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Suppose the rate of return on a 1 0 - year T - bond is 5 . 5 5 % , the expected average rate
Suppose the rate of return on a year Tbond is the expected average rate of inflation over the next years is the MRP on a year Tbond is 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 year TIPS?
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