Reading a variable inductive movement sensor

Hello,

I am facing a situation where I need to read an inductive position sensor. This sensor is based on a coil where a steel rod is moving slowly up and forward in it and stops at any position.

the sensor have two wires which goes to each end of the coil.
So since the DC resistance is not changing at all while the steelrod is moving I have to use a AC signal to create the inductive resistance of the coil. How can I create and read this signal with a Teensy or Arduino?

THX!

As a start, have you, using the internet, looked up "arduino metal detector"?

I'd also think about center tapping the coil, should give an increase in positional accuracy of the steel rod within the coil.