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1. You buy TIPS at issue at par for $1000. The bond has a 6% coupon. Inflation turns out to be 2%, 3% and 4%

1. You buy TIPS at issue at par for $1000. The bond has a 6% coupon. Inflation turns out to be 2%, 3% and 4% over the next 3 years. Figure out the sum of principle and coupon payment in year 3.

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