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Suppose that the coupon rate for a TIPS is 4.8%. Suppose furtherthat an investor purchases $100,000 of par value (initialprincipal) of this issue today and

Suppose that the coupon rate for a TIPS is 4.8%. Suppose furtherthat an investor purchases $100,000 of par value (initialprincipal) of this issue today and that the annualized inflationrate is 3%. 2 answers

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