Question: 4. (a) What does TIPS stand for in the context of the Treasury markets? (b) Briefly explain why yields of nominal bonds are typically higher

4. (a) What does TIPS stand for in the context of the Treasury markets? (b) Briefly explain why yields of nominal bonds are typically higher than yields of TIPS bonds with corresponding maturities. (c) Briefly explain how one can use the Treasury markets to infer investors' expectation of inflation over the next 10 years.

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