What is the amount of the coupon payment

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A financial analyst at JPMorgan Chase is evaluating a Treasury Inflation-Protected Security (TIPS bond) with a 3-year maturity, par value of $1,000, and a 8% coupon rate. The estimated average inflation rate will be 4% over the first year, 5% over the second year, and 6% over the third year.

What is the amount of the coupon payment the bond holder will receive in the first year

Reference no: EM133111693

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