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Question 17 Not yet answered Points out of 3.oo Flag question A plain-vanilla 10-year Treasury note currently yields about 4.0%, while a 10-year TIPS carries

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Question 17 Not yet answered Points out of 3.oo Flag question A plain-vanilla 10-year Treasury note currently yields about 4.0%, while a 10-year TIPS carries a fixed coupon rate of 2.2%. Among the following statements, which ones are correct? I. The real rate of return on TIPS (after adjusted for inflation) is approximately equal to the fixed coupon rate. II. The expected annualized inflation rate over 10 years is around 2.2%. III. If the average inflation over the 10-year period is 2.75%, the standard Treasury will underperform the TIPS. IV. If the average inflation over the 10-year period is 1.50%, the standard Treasury will outperform the TIPS. Select one: O a. I only O b. I and II O c. I, Ill, and IV O d. I, II, and IV D O e. All of them Time left 1:58:19

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