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:

Child

A young human being, especially one from birth to puberty.

Grief

A profound emotional sorrow or distress caused by loss, particularly the loss of a loved one, often involving various stages of processing and coping.

Reassurance

The action of removing doubts or fears and restoring confidence in an individual, often through supportive words or gestures.

Invulnerability

A state or condition of being incapable of being wounded, harmed, or damaged, either physically or emotionally.