Question: A TIPS bond is 1.5 years away from maturity. This bond has a 3.5% yield, 4.8% coupon rate, and makes semiannual payments. The CPI is

A TIPS bond is 1.5 years away from maturity. This bond has a 3.5% yield, 4.8% coupon rate, and makes semiannual payments. The CPI is currently at 200. You expect the CPI to increase to 204 after 6 months, to 210 after 12 months, and to 215 after 18 months. Calculate the price of this bond.

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