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26 April, 03:07

An investor buys a $10,000 par, 4.25 percent annual coupon TIPS security with three years to maturity. If inflation every six months over the investor's holding period is 2.50 percent, what is the final payment the TIPS investor will receive?

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  1. 26 April, 05:03
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    The correct answer is $11,843.37
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