If you could invest in a 10-year Inflation-Indexed (real) Icelandic government bond with a 1%...
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Finance
If you could invest in a 10-year Inflation-Indexed (real) Icelandic government bond with a 1% yield-to-maturity or in a 10-year non-indexed (nominal) Icelandic government bond with a 5% yield-to-maturity.
How much inflation are investors expecting per year for the next 10 years according to that?
Group of answer choices
a- 5.00%
b-4.00%
c-6.00%
d-3.96%
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