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Suppose you buy a TIPS bond with a 5% coupon rate, 3 years to maturity, pays annually, and a YTM of 3.3%. The CPI is
Suppose you buy a TIPS bond with a 5% coupon rate, 3 years to maturity, pays annually, and a YTM of 3.3%. The CPI is currently at 300 and is expected to increase to 310 after one year; to 324 after two years; and to 340 after three years. Calculate the price of this bond
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