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40 points 6. Assume an inflation protection bond (TIPS) with 20 years remaining to expiration carries a coupon rate of 1.5% and is sold for

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40 points 6. Assume an inflation protection bond (TIPS) with 20 years remaining to expiration carries a coupon rate of 1.5% and is sold for $900. The par value of the bond is $1,000. Complete the table below and show full calculations in each cell. YR Interest Accrued Interest earned Total $ return Rate of return % Real rate of Inflation Received Principal value due to inflation (Nominal) return% 5.0% 4% 3 %

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