Question
You buy a TIPS at issue at par for $1,000. The bond has a 4.67% annual pay coupon. Inflation turns out to be 2.92%, 3.15%,
You buy a TIPS at issue at par for $1,000. The bond has a 4.67% annual pay coupon. Inflation turns out to be 2.92%, 3.15%, and 2.79% over the next 3 years. What is the total annual coupon income you will receive in year 3?
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
