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You buy a TIPS at issue at par for $1,000. The bond has an 8% coupon. Inflation turns out to be 3%, 4% and 5%

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You buy a TIPS at issue at par for $1,000. The bond has an 8% coupon. Inflation turns out to be 3%, 4% and 5% over the next 3 years. Figure out the principal and the coupon payment in Year 2

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