Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%.

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Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%. If you buy the bond at face value and the inflation rate is 4.7%, then what will be your nominal return during the year?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Mar 07, 2024 10:57 PM

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Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%.

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To calculate the nominal return on a TIPS Treasury InflationProtected Securities bond we need to con... View the full answer

Fundamentals of Corporate Finance

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