Question 27 (1.25 points) You buy a 2-year TIPS at issue at par for $1,000. The bond has a 2.5% coupon. Inflation turns out to be 3% and 1.5% over the next 2 years. How much is the principal repayment in year 2? a) $1,050.60 b) $1,000 c) 1,045.45 d) $1,020 e) $1,060