A 10-year government bond currently yields 10% with a maturity risk premium of 3%. The rate of return on an ideal world without inflation is 2%. If the inflation rate for the years one to five is the...


A 10-year government bond currently yields 10% with a maturity risk premium of 3%.  The rate of return on an ideal world without inflation is 2%.  If the inflation rate for the years one to five is the same at 4% per year, what is the expected per year average rate of inflation between years five to ten? (In percentage, put percentage sign)



Jun 11, 2022
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