Does this sound right to my question?
10 year at 8.4% with an inflation of 2.5 over that same time period.
risk free stays the same LP is zero so those are really irrelavant.
so we need to figure out a five year equation of the above but with five years
8.4% shouldn't change due to its pretty much locked in
now the 2.5% predicted inflation is over ten years.
So that 2.5 needs to be broke down over a ten year span which is a quart of percent per year for ten years..and that quarter of percent needs to be broken down to a monthly percent
So a year is .25/12=0.020834of a percent per month.
So for five years would it be 0.020834 permonth for five years.
12 months is a year for five years is sixty months.
So maybe 0.020834*60=1.25% for the inflation for that five year period.