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Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of $ 1 , 0 0
Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of $ One is a Treasury note paying an annual coupon of percent. The other is a TIPS that pays percent interest annually.
a If inflation remains constant at percent annually over the next five years, what will be Judy's annual interest income from the TIPS bond? From the Treasury note?
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