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Which one of the following statements related to TIPS is correct assuming an inflationary environment? TIPS have a maturity value of $1,000. TIPS pay a

Which one of the following statements related to TIPS is correct assuming an inflationary environment? TIPS have a maturity value of $1,000. TIPS pay a fixed coupon rate. The interest rate is adjusted semiannually for inflation. TIPS pay an interest payment based on the latest T-bill rate. The principal amount of a TIPS is adjusted annually for inflation.

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