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Suppose the yield on a 10 year t-bond is currently 5.05% and that on a 10 year treasury inflation protected security is 2.15%. suppose further that the mrp on a 10 year t bond is .9% that no mrp is required on a tips and that no liquidity premium is required on any tbond. given this information what is the expected rate of inflation over the next 10 years?

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2.00% is the answer! :)
User Skaranjit
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