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Use the following information and the interest rate formula to determine the answer to the foldowing. One-year treasury securities yield 12% and two-year treasuries yield

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Use the following information and the interest rate formula to determine the answer to the foldowing. One-year treasury securities yield 12% and two-year treasuries yield 15%. The maturity risk premium is 0 for one-year debt and 1% for two-year debt. The real risk-free rate is 3.4%. What. is the expected rate of inflation for year 2 ? (Hint: Set up a separate model for each term with the yearly inflation rates as unknowns.) Round your answer to one decimal place and include a % sign

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