Assuming the Same Coupon Rate and Maturity Length,when the Interest

Multiple Choice

Assuming the same coupon rate and maturity length,when the interest rate on a Treasury Inflation Indexed Security is 3 percent,and the yield on a nonindexed Treasury bond is 8 percent,the expected rate of inflation is

A) 3 percent.
B) 5 percent.
C) 8 percent.
D) 11 percent.