Question
You buy a TIPS at issue at par for $1,000. The bond has a 3.5% coupon. Inflation turns out to be 2.5%, 3.5%, and 4.5%
You buy a TIPS at issue at par for $1,000. The bond has a 3.5% coupon. Inflation turns out to be 2.5%, 3.5%, and 4.5% over the next 3 years. The total annual coupon income you will receive in year 3 is _________.
$35.00
$36.23
$38.80
$38.50
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
2nd Edition
0073530670, 9780073530673
