Drawn about expected inflation rates

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Reference no: EM131297492

The real risk-free rate is 2.4%. The maturity risk premium is 0.1% for 1-year maturities, growing by 0.2% per year up to a maximum of 1.0%. The interest rate on 4-year treasuries (federal government bonds) is 6.4%, 7.5% on 8-year treasuries, and 8.2% on 10-year treasuries. What conclusions can be drawn about expected inflation rates over the 10-year period? Round your answers to one decimal place.

The average inflation rate over the first 4 years: %

The average inflation rate for years 5-8: %

The average inflation rate in years 9 and 10 : %

Reference no: EM131297492

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