1. Addison buys a $10,000 par of a 2 year, 10% semi-annual coupon TIPS.

How much she will receive on the coupon payment date a year from today, assuming the expected inflation rate is 2%?

		500
		510
		1020
		1000

2.

Indicators 0 Corporison Jan 02.1995 - Jun 03, 2019 10 50 1M 3M 6M YTD 1Y 2Y5Y Max Interval 1M w Line Draw 980112 SPC 10071 C 1922.21 X 993 20% 750.00% 593 71% V553394 500 00 250.00% 0.00% 1.568 1995 1998 2000 2002 2001 2005 2008 2010 2012 2015 We discussed the above graph on financial market performance in class. According to our discussions, which one of the following statements is false: O Stock market prices have been volatile over time. O Stock market prices have been seemingly fluctuating along with business cycles. O Buy-and-hold have worked well for investors. O Financial markets do crash over time. Investors should rebalance their portfolio from time to time