The expected inflation rate after a year. Introduction: Expectation Theory: Expectation theory estimates the future interest without considering the of maturity risk. According to the expectation theory, the yield curve of investment totally depends upon the future expectation of the investors.

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Chapter 6, Problem 10P

Summary Introduction

To identify: The expected inflation rate after a year.

Introduction:

Expectation Theory:

Expectation theory estimates the future interest without considering the of maturity risk. According to the expectation theory, the yield curve of investment totally depends upon the future expectation of the investors.

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