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Suppose a portfolio manager purchases $1 million of par value of a Treasury inflation protection security. The real rate (determined at the auction) is 3.2%.

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Suppose a portfolio manager purchases $1 million of par value of a Treasury inflation protection security. The real rate (determined at the auction) is 3.2%. Assume that at the end of the first six months the CPI-U is 3.6% (annual rate). Use the above information to answer questions 29 and 30 . What is the coupon payment made to the investor at the end of the first six months? A. $16,288.00 B. $15,208.00 C. $17,288.00 D. $16,578.00

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