What is the inflation-adjusted princi- pal at the end of six months? d. Suppose that an investor

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What is the inflation-adjusted princi- pal at the end of six months?

d. Suppose that an investor buys a five-year TIPS and there is deflation for the entire period. What is the principal that will be paid by the Department of the Treasury at the maturity date?

e. What is the purpose of the daily index ratio?

f. How is interest income on TIPS treated at the federal income tax level?

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