A RECENT STUDY OF INFLATIONARY EXEPECTATION/TUTORIALOUTLET DOT COM A RECENT STUDY OF INFLATIONARY EXEPECTATION/TUTORI

A recent study of inflationary expectations
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P6–5 Nominal interest rates and yield curves A recent study of
inflationary expectations has revealed that the consensus among
economic forecasters yields the following average annual rates of
inflation expected over the periods noted (Note: Assume that the risk
that future interest rate movements will affect longer maturities more
than shorter maturities is zero; that is, assume that there is no maturity
risk.)
Period
Average annual rate of inflation
3 months 5%
2 years 6
5 years 8
10 years 8.5
20 years 9