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As a financial analyst at BAC financial, you are evaluating a TIPS bond with a 3-year maturity, par value of $1,000, and a coupon rate

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As a financial analyst at BAC financial, you are evaluating a TIPS bond with a 3-year maturity, par value of $1,000, and a coupon rate of 8%. The estimated average inflation rate will be 4% over the first year, 5% over the second year, and 6% over the third year What is the amount of the coupon payment the bond holder will receive in the first year ? (sample answer: $45) Second year ? (sample answer: $45) What will be the face value of the bond at the end of first year (sample answer: 1.245.45) The second year ? (sample answer: $1,245.45)

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