Question: a 12. (3 points) You buy a TIPS at issue at par for $1,000. The bond has a 3% coupon. Inflation turns out to be

a 12. (3 points) You buy a TIPS at issue at

a 12. (3 points) You buy a TIPS at issue at par for $1,000. The bond has a 3% coupon. Inflation turns out to be 2%, 3% and 8% over the next three years. The total annual coupon income you will receive in year three is A) $30.00 B) $33.00 C) $32.78 D) $30.90 E) $34.04 F) $33.90

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