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An investor bought TIPS with an inflation adjusted face value of USD997,243. This particular issue pays a fixed coupon of 1.5%. Over the next period,
An investor bought TIPS with an inflation adjusted face value of USD997,243. This particular issue pays a fixed coupon of 1.5%. Over the next period, CPI increases by 0.76%. What is the adjusted face value and the coupon payment at the end of the period?
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Adjusted principal is 1,004,822 and the coupon will be 15,072
Adjusted principal is 1,004,822 and the coupon will be 7,479
Adjusted principal is 997,243 and the coupon will be 7,479
Adjusted principal is 1,004,822 and the coupon will be 7,536
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