Assume the real risk free rate is 2 and that the maturity


Assume the real risk free rate is 2% and that the maturity risk premium is zero. If a one year Treasury bond yield is 5% and a 2yr Treasury bond yields 7%, what is the 1year interest rate that is expected one year from now. What inflation rate is expected during year 2?

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Financial Management: Assume the real risk free rate is 2 and that the maturity
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