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An investor holds $100,000 (par value) worth of Treasury Inflation Protected Securities (TIPS) that carry a 2.5% semiannual pay coupon. If the annual inflation rate

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An investor holds $100,000 (par value) worth of Treasury Inflation Protected Securities (TIPS) that carry a 2.5% semiannual pay coupon. If the annual inflation rate is 3%, what is the inflation-adjusted principal value of the bond after six months? A. $100,000 B. $101,500 C. $102,500 ie $103,000

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