4. Calculate duration of a 3 year TIPS security that makes payments only once a year at an 8% coupon rate. The expected inflation rate is 1% over the first year and 3% in years 2 and 3. The bond costs $1000 (i.e. the bond trades at par). (35 points) FOR -5 POINTS CREDIT: If you are stuck on finding a discount rate, use 9%.