Market expectation of the average annual rate

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Today's Wall Street Journal quotes the yield on an inflation-indexed bond (principal is adjusted semi-annually for changes in the Consumer Price Index) that matures in January of 2025 as 0.30% while a non-indexed bond maturing at the same time is priced to yield a 2.29% rate of return. What is the market expectation of the average annual rate of inflation over this time period?

Reference no: EM131966968

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