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One Year Ago, You Purchased a Newly-Issued TIPS Bond That

question 38

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One year ago, you purchased a newly-issued TIPS bond that has a 6% coupon rate, five years to maturity, and a par value of $1,000.The average inflation rate over the year was 4.2%.What is the amount of the coupon payment you will receive, and what is the current face value of the bond?


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