The Yield on a Three-Year Treasury Note Is 4

question 34

Multiple Choice

The yield on a three-year Treasury note is 4.5% and the yield on a three-year TIPS is 2.4%. What is the market's estimate of the annual inflation rate over the next three years?

• A) 1.1%
• B) 1.6%
• C) 4.5%
• D) 2.4%
• E) 2.1%

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Definitions:

Foundations

Organizations established with the purpose of providing financial support to charitable causes, often endowed by a single benefactor.

Glass-Ceiling Effect

a barrier to advancement that is not officially acknowledged, limiting the progression of minorities and women in professional environments.

Career Advancement

The progression through a career path, which might involve upward movement, increasing responsibility, and higher compensation.

Invisible Barrier

A term often used to describe unseen obstacles preventing certain groups from advancing within an organization or system, such as the "glass ceiling" for women and minorities.