Question: Suppose that the current yield on 10-year maturity Treasury note is 2% and the current yield on 10-year maturity TIPS is 1%. If the expected

Suppose that the current yield on 10-year maturity Treasury note is 2% and the current yield on 10-year maturity TIPS is 1%. If the expected U.S. inflation rate of next year is 4%, which security do you want to buy between TIPS and Treasury note (in other words, which one generates higher return)? Why?

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