Question: Please answer this conceptual questions, I will be grateful if you help me and in retrun i ll make nice ratings please. Question 4 0

Please answer this conceptual questions, I will be grateful if you help me and in retrun i ll make nice ratings please.

Question 4 0 / 1 point

You buy a 3-year TIPS at issue at par for $1,000. The bond has a 2% coupon. Inflation turns out to be 2%, 3%, and 2% over the next 3 years. The par value you will receive in year 3 is ________.

Question options:

a)

$1,000

b)

$1,071.61

c)

$1,100.00

d)

$0

e)

$1,092.62

Question 6 0 / 1 point

You buy a TIPS at issue at par for $1,000. The bond has a 2% coupon. Inflation turns out to be 2%, 3%, and 2% over the next 3 years. The total annual coupon income you will receive in year 3 is ________.

Question options:

a)

$22.78

b)

$20

c)

$21.43

d)

$20.6

e)

$24.52

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