Question: Consider a Treasury Inflation Protected Securities (TIPS) with 5 years to maturity and the face value of exist1,000. The standard coupon interest rate is 5%.

Consider a Treasury Inflation Protected Securities (TIPS) with 5 years to

Consider a Treasury Inflation Protected Securities (TIPS) with 5 years to maturity and the face value of exist1,000. The standard coupon interest rate is 5%. The current NOMINAL rate on the 5 year Treasury notes is 8%, and the expected inflation rate is 2%. What is the value of the TIPS? exist980

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