Explain parts of equation for a nominal rate of interest

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Reference no: EM13836578

Assuming the same risk structure and term to the maturity of the investments, if the yield on a Treasury Inflation Protected Security (TIPS) is 0.28 percent, and the yield on a regular Treasury Bond is 2.73 percent, then:

A. Write down and explain parts of equation for a nominal rate of interest

B. Calculate the expected rate of inflation

Reference no: EM13836578

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