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Judy Johnson is choosing between investing in two Treasury securities that mature in fi ve years and have par values of $1,000. One is a

Judy Johnson is choosing between investing in two Treasury securities that mature in fi ve years and have par values of $1,000. One is a Treasury note paying an annual coupon of 5.06 percent. The other is a TIPS which pays 3 percent interest annually. a. If infl ation remains constant at 2 percent annually over the next fi ve years, what will be Judy

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