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Assume that you purchase a TIPS for $1,000 when it is first issued, and it pays a 1.85% coupon rate. If the CPI inflation rate
Assume that you purchase a TIPS for $1,000 when it is first issued, and it pays a 1.85% coupon rate. If the CPI inflation rate is 3%, 4%, 5% and 7% over the next four years, what will be the new par value of the bond and the new annual coupon payment at the end of four years?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
