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Corporate Finance Assignment/ Professional Essay Writers

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May 7th, 2020
Due to a recession, expected inflation this year is only 1.75%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 1.75%. Assume that the expectations theory holds and the real risk-free rate (r*) is 1.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 0.5%, what inflation rate is expected after Year 1? Round your answer to two decimal places.  Get Finance Help Today
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