An investor holds $100,000 (par value) worth of US Treasury Inflation Protection Securities (TIPS) currently trading at par. The coupon rate of 4% is paid semi-annually, and the annual inflation rate is 2.5%. What coupon payment will the investor receive at the end of the first six months?

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Answer rating: 100% (QA)

To solve this problem we need to calculate the coupon payment that the investo... View the full answer