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Use the following information to answer the next two questions: You bought a TIPS bond on January 1, 2014. The bond had an original principal
Use the following information to answer the next two questions: You bought a TIPS bond on January 1, 2014. The bond had an original principal of $125,000, a 5 percent coupon rate, and 20 years to maturity. The bond pays interest January 1 and July 1 each year. Calculate the first coupon payment you would receive if the semiannual inflation rate during the first six months is .6 percent. O 3125 3143.75 6287.5 6250 QUESTION 19 Suppose that the semiannual inflation rate for the second six-month period is.2 percent. Calculate the second coupon payment you would receive. 6300.08 6262.5 3131.25 3150.04
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