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You just bought a Treasury inflation protected security (TIPS) at its face value of $1,000. The bond matures in one year and pays a 6%

You just bought a Treasury inflation protected security (TIPS) at its face value of $1,000. The bond matures in one year and pays a 6% coupon annually. The inflation rate will be 3% during the year.

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What will be your cash flow after one year?

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