Question: You buy a TIPS at issue at par for $1,000. The bond has a 4% coupon, Inflation turns out to be 2%,3%, and 4% over

 You buy a TIPS at issue at par for $1,000. The

You buy a TIPS at issue at par for $1,000. The bond has a 4% coupon, Inflation turns out to be 2%,3%, and 4% over the next 3 years. The total annual coupon income you will receive in year 3 is a) $40.6 b) $43.70 c) $42.78 d) $41.52 e) $40

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