Treasury note has no maturity risk premium

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Assume that a 5-year Treasury note has no maturity risk premium, and that the real, risk-free rate of interest is 3.5 percent. If the T-note carries a yield to maturity of 10 percent, and if the expected average inflation rate over the next 4 years is 4.5 percent, what is the implied expected inflation rate during Year 5?

Reference no: EM131314350

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