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15-05-2023
Business

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A $1,000 par TIPS is issued with 3 years to maturity. The coupon rate on the bond is 2.50%. If the inflation rate for the next 3 years is 1.50%, the bond will be worth how much in 3 years?
A. $1,000
B. $1,046
C. $1,077
D. $1,125

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