The interest rate on a 10-year treasury bond for March 17, 2017 was 2.55%. The interest rate on a 10-year TIPS was .54%. The interest rate on a 5-year treasury bond was 2.07% and the interest rate on a 5-year tips was .21%.
a) What is the expected inflation rate over the next 5 years?
b) What is the expected inflation rate over the next 10 years?
c) What is the expected inflation rate for years 5 to 10?