Question: 7 . The ten year Treasury TIPS yield 0 . 8 1 2 % while the ten year Treasury bond has a yield to maturity

7. The ten year Treasury TIPS yield 0.812% while the ten year Treasury bond has a yield to maturity of 2.6%. Please explain why there are differences between yields of these two bonds both issued by the Department of Treasury.
8. Based on information given in Question 7, what is the implied expected inflation rate for the next ten years?

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