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You buy a TIPS at issue at par for $1,000. The bond has a 3.74% annual pay coupon. Inflation turns out to be 2.88%,
You buy a TIPS at issue at par for $1,000. The bond has a 3.74% annual pay coupon. Inflation turns out to be 2.88%, 2.17%, and 3.71% over the next 3 years. What is the total annual coupon income you will receive in year 3?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
