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You observe the following yield quotes in the U.S. Treasury market: 5-year: (conventional)notes: 0.7% TIPS: 0.17% 10-year: (conventional)notes: 0.94% TIPS: 0.04% Based upon these quotes,

You observe the following yield quotes in the U.S. Treasury market:

5-year: (conventional)notes: 0.7% TIPS: 0.17%

10-year: (conventional)notes: 0.94% TIPS: 0.04%

Based upon these quotes, you can conclude, the market's expectation for five-year inflation five years forward (i.e., for years 6 through 10) is closest to:

A. 0.75%

B. 1.00%

C. 1.25%

D. 1.75%

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