Calculate the 10-year break-even inflation rate

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Reference no: EM132648694

Suppose you are given the following information about U.S. Treasury Notes:

A 5-year T-NOTE has a yield to maturity of 0.33%

A 10-year T-NOTE has a yield to maturity of 0.71%

Suppose you are given the following information about U.S. TIPS Notes:

A 5-year TIPS has a yield to maturity of -0.62%

A 10-year TIPS has a yield to maturity of -0.5%

Calculate the 10-year break-even inflation rate using the approximate Fisher Equation. (Enter percentages as decimals and round to 4 decimals)

Reference no: EM132648694

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