Question
You buy a TIPS at issue at par for $1,000. The bond has a 3.3% coupon. Inflation turns out to be 2.3%, 3.3%, and 4.3%
You buy a TIPS at issue at par for $1,000. The bond has a 3.3% coupon. Inflation turns out to be 2.3%, 3.3%, and 4.3% over the next 3 years. The total annual coupon income you will receive in year 3 is _________.
Multiple Choice
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$33.00
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$34.09
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$36.37
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$36.30
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Money Banking And Financial Markets
Authors: Lloyd B. Thomas
1st International Edition
0070644365, 9780070644366
