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3. TIPS calculate the coupon payment TIPS w/ 4% coupon rate. What will coupon payment be in year 2? Year 3? amounts for year 2:
3. TIPS calculate the coupon payment
TIPS w/ 4% coupon rate. What will coupon payment be in year 2? Year 3?
amounts for year 2: 42.02
year 3: 42.44
How did we get these amounts
Inflation in year just ended. Year 1: 2% Year 2: 3% Year 3: 1%
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