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Question of the Week - Fixed Income
Erin purchases a ten-year TIPS bond with a $25,000 face value. This particular issue pays semiannual coupons at a rate of the CPI + 125 basis points, with a floor of 5%.
CPI rates for the first three reset dates are 3.25%, 4.75%, and 5.25%.
The payout from this bond over the first three coupons is closest to?
Question of the Week - Fixed Income 19 votes