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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 (inflation-indexed) bond with a 2 year maturity and a (real )coupon bond with a 2-year maturity and a (real) coupon of 4.4% paid annually. If you buy the bond at its face value of 1000 dollar and the inflation rate is 8.60% in each year. a)What will be cash flow in year 1?, b)what will be cash flow in year 2?, c)what wiil be your real rate of return over the two year period?

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