Question: Suppose you purchase a 2 year TIPS bond with a coupon rate of 5% and a Par value of $1,000. If inflation in the first

Suppose you purchase a 2 year TIPS bond with a coupon rate of 5% and a Par value of $1,000. If inflation in the first year is 6% and inflation in the second year is 3%, how much will the bond pay you in the second year?

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