Question
Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%. If you buy the bond at face value
Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%. If you buy the bond at face value and the inflation rate is 4.7%, then what will be your nominal return during the year?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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