EP FUNDAMENTALS OF FIN.MGMT.-MINDTAP
EP FUNDAMENTALS OF FIN.MGMT.-MINDTAP
14th Edition
ISBN: 9781305672086
Author: Brigham
Publisher: CENGAGE L
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Chapter 6, Problem 10P
Summary Introduction

To identify: The expected inflation rate after a year.

Expectation Theory:

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

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