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Mathematics 13 Online
OpenStudy (anonymous):

Can anyone help with a finance problem? when choosing between investing in two treasury securities that mature in 5 years & having par values of $1000. One is a treasury note paying an annual coupon of 5.06%. The other is TIPS witch pays 3% interest annually. If inflation remains constant a 2% annually over the next 5 years, what will be the annual interest income from the TIPS bond? from the treasury note?

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