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Suppose you are given the following information about a US Treasury Notes: A 5-year T-NOTE has a yield to maturity of 3.5% A 10-year T-NOTE

Suppose you are given the following information about a US Treasury Notes:

A 5-year T-NOTE has a yield to maturity of 3.5%

A 10-year T-NOTE has a yield to maturity of 4.2%

Suppose you are given the following information about US TIPS Notes:

A 5-year TIPS has a yield to maturity of 1.2%

A 10-year TIPS has a yield to maturity of 1.35%

Calculate the 10-year break-even inflation rate using the approximate Fisher Equation (List percentages as decimals and round to 4 decimals)

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