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An inflation-indexed Treasury bond (TIPS) has a par value of $10,000 and a coupon rate of 4%. An investor purchases this bond and holds it

An inflation-indexed Treasury bond (TIPS) has a par value of $10,000 and a coupon rate of 4%. An investor purchases this bond and holds it for two years. Inflation is 3.5% the first year and 3.0% the second year. Complete the table.

Year 0

Year 1

Year 2

Par

10,000

Interest Payment

-

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