Question $30$

Question ID: $1545082$

A TIPS bond has a coupon of $3\%.$ Over a two$-$year period, the annual inflation rate has been $4\mathrm{.}5\%.$ At the end of that time, the principal value of the TIPS would be$?$

A$)$ $$1,090\mathrm{.}00.$

B$)$ $$1,060\mathrm{.}00.$

C$)$ $$1,093\mathrm{.}08.$

D$)$ $$1,061\mathrm{.}36.$