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?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
