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Please explain the answers and calculations to this question. You wish to analyze inflation expectations in the U.S. and gather the following data regarding U.S

Please explain the answers and calculations to this question.

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You wish to analyze inflation expectations in the U.S. and gather the following data regarding U.S Government bonds: Maturity Real (TIPS) Yield Nominal Yield 5 Years -1.56% 0.86% 10 Years -0.62% 1.59% (i) Calculate the average inflation rate projection for the next five years implied by these yields. (6 points) (ii) Certain investors focus on forward inflation expectations, such as the implied five-year inflation rate beginning in five years' time. Calculate that "5 year by 5 year" rate using the information provided above. (10 points)

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