What is the expected rate on three year treasury securities

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Question - Assume that the real risk free rate is constant at 1.5 %. The yield is 2.3% on 1-year treasury, 3.0% on 2-year treasury, 3.5% on 3-year treasury, and 5.0% on 5-year treasury securities. What is the expected rate of inflation in year 2? What is the expected rate on three year treasury securities, 2 years from now?

Reference no: EM131730014

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