Question: Now suppose that the bond in the previous problem is a TIPS (inflation-indexed) bond with a coupon rate of 4%. What will the cash flow

Now suppose that the bond in the previous problem is a TIPS (inflation-indexed) bond with a coupon rate of 4%. What will the cash flow provided by the bond be for each of the four inflation rates? What will be the real and nominal rates of return on the bond in each scenario?

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