Question: You purchased a 1 0 - year $ 1 0 , 0 0 0 TIPS bond with dividend of 4 % per year payable semiannually
You purchased a year $ TIPS bond with dividend of per year payable semiannually ie $ every
months Assume there is no inflation adjustment for the first years, but in years through the bond face value
increases by $ each year. You use an expected investment return of per year compounded semiannually.
NOTE: This is a multipart question. Once an answer is submitted, you will be unable return to this part.
What will be the equivalent future worth of the total money received with dividend reinvestment included?
The future worth of all the income received would be $
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