What is the dollar coupon interest that will be paid

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Reference no: EM132004632

Suppose that the coupon rate for TIPS is 2%. Suppose further that an investor purchases 1,000,000 of par value (initial principal) of this issue today and that the annual inflation rate is 2%.

What is the dollar coupon interest that will be paid in cash on the second coupon payment day?

Reference no: EM132004632

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