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What is the annual inflation rate

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On August 31st, 2021, you observe the prices of the US Treasury 5 year zero-coupon nominal of $961.50 and real (TIPS) bonds of $1092.338. Assuming par value $1000 and the liquidity premium, inflation risk premium, and taxes are all 0, what is the 5 year annual inflation rate investors expect on August 31st, 2021, based on these prices?

Reference no: EM133061067

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