What is the approximate expected annual rate of inflation

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Reference no: EM131994153

Assume a nominal interest rate on five-year U.S. Treasury Bills of 1.10% and the yield on an 5-year Treasury inflation indexed security is -1.42%. Using the Fisher Effect Equation, what is the approximate expected annual rate of inflation in the U.S. over the next 5 years ( in 4 decimals)?

Reference no: EM131994153

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