Question
2. Use current data, for example from the Wall Street Journal, on TIPS (http://www.wsj.com/mdc/public/page/2_3020-tips.html?mod=mdc_bnd_pglnk) and regular treasury securities (http://www.wsj.com/mdc/public/page/2_3021-bondyield.html?mod=mdc_bnd_pglnk) to derive estimates of the markets
2. Use current data, for example from the Wall Street Journal, on TIPS (http://www.wsj.com/mdc/public/page/2_3020-tips.html?mod=mdc_bnd_pglnk) and regular treasury securities (http://www.wsj.com/mdc/public/page/2_3021-bondyield.html?mod=mdc_bnd_pglnk) to derive estimates of the markets expectation of the rate of inflation (sometimes also called the break-even inflation rate) over the next a) 2 years, b) 10 years, c) 30 years. For each calculation be sure to describe what bond yields you are using as inputs (maturity date and coupon of bond; trading day reflected in data) as well as the source of your data. Explain why you chose the maturity date and coupon you used for your calculation.
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