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You buy a TIPS at issue at par for $ 1 , 0 0 0 . The bond has a 3 . 5 % coupon.

You buy a TIPS at issue at par for $1,000. The bond has a 3.5%
coupon. Inflation turns out to be 3%,4%, and 5% over the next 3 years. The
total annual coupon income you will receive in year 3 is?

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