Question: Assume you purchase a Treasury Inflation - Protected Security ( TIPS ) with a face value of $ 1 0 0 & interest rate of

Assume you purchase a Treasury Inflation-Protected Security (TIPS) with a face value of $100 & interest rate of 4%. If inflation increases by 7%, the face value of the TIPS increases to $104.
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Assume you purchase a Treasury Inflation-Protected Security (TIPS) with a face

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