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Consider a newly issued TIPS bond with a 3-year maturity, par value of exist1,000, and coupon rate of 4.90%. Assume annual coupon payments. What is

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Consider a newly issued TIPS bond with a 3-year maturity, par value of exist1,000, and coupon rate of 4.90%. Assume annual coupon payments. What is the nominal rate of return on the TIPS bond in the first year? 4.80% 5.04% 7.94% 8.70%

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