Suppose you have got 100000 to save and you are considering


Suppose you have got $100,000 to save and you are considering buying a ten-year TIPS with the following conditions: A one-year TIPs has a real interest rate of 4%. The consumer price index today is 120. The anticipated inflation rate is 4% p.a. Calculate the nominal payment on the TIPs you can expect in ten years. Calculate the TIPs anticipated nominal return.

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Finance Basics: Suppose you have got 100000 to save and you are considering
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