Question 5 Consider an investment management firm that buys a 10-year zero-coupon US Treasury bond and a 10-year zero-coupon US Treasury inflation protected security (TIPS). The initial implied yield for the 10-year zero-coupon US Treasury bond is 2.0%. The initial implied real yield for the 10-year zero-coupon TIPS bond is 0.4%. a) Calculate the initial implied 10-year breakeven inflation rate. b) Calculate the initial prices for both bonds based on the given yields. [8 marks]