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suppose that you buy a TIPS ( inflation - indexed ) bond with a 2 year maturity and a ( real ) coupon bond with
suppose that you buy a TIPS inflationindexed bond with a year maturity and a real coupon bond with a year maturity and a real coupon of paid annually. If you buy the bond at its face value of dollar and the inflation rate is in each year. aWhat will be cash flow in year bwhat will be cash flow in year cwhat wiil be your real rate of return over the two year period?
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