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Suppose that you buy a TIPS (inflation-indexed) bond with a 2-year maturity and a (real) coupon of 5.5% paid annually. If you buy the bond

Suppose that you buy a TIPS (inflation-indexed) bond with a 2-year maturity and a (real) coupon of 5.5% paid annually. If you buy the bond at its face value of $1,000, and the inflation rate is 10.25% in each year. A. What will be your cash flow in year 1? B. hat will be your cash flow in year 2? C. What will be your real rate of return over the two-year period

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