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Suppose that the coupon rate for a TIPS is 4.7%. Suppose further that an investor purchases $200,000 of par value (initial principal) of this issue

Suppose that the coupon rate for a TIPS is 4.7%. Suppose further that an investor purchases $200,000 of par value (initial principal) of this issue today and that the annualized inflation rate is 4%. If the annualized inflation rate over the following 6 months is -1.3%.

What is the coupon payment (in $) at the end of the year?

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