Question
You buy a TIPS at issue at par for $1,000. The bond has a 4.94% annual pay coupon. Inflation turns out to be 3.72%, 2.84%,
You buy a TIPS at issue at par for $1,000. The bond has a 4.94% annual pay coupon. Inflation turns out to be 3.72%, 2.84%, and 2.09% over the next 3 years. What is the total annual coupon income you will receive in year 3?
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
