Question
You've read in the Wall Street Journal that the yield on a 5 year TIP is 2% larger than the yield on an ordinary 5
You've read in the Wall Street Journal that the yield on a 5 year TIP is 2% larger than the yield on an ordinary 5 year Treasury note. Is the market predicting that the average expected inflation rate is 2% over the next 5 years? Why or why not?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
