Question: CH 6 Problem 6-23 Real Returns (L03) 10 Suppose that you buy a TIPS (inflation Indexed) bond with a year maturity and a coupon of

CH 6 Problem 6-23 Real Returns (L03) 10 Suppose that you buy a TIPS (inflation Indexed) bond with a year maturity and a coupon of 4% pold annually. Assume you buy the bond at its face value of $1,000, and the inflation rate 16% .. What will be your cash flow at the end of the year? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Cash bro b. What will be your real return? |Ra c. What will be your nominal return? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Nonton

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