Which one do you prefer between the regular treasury notes

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Reference no: EM132019625

Suppose that you want to buy 10-year Treasury notes, which offer 3% yield and are selling at par. The same maturity TIPS provide you with 2% coupon rate. Assume expected annual inflation rate this year is 3%.

Which one do you prefer between the regular treasury notes and TIPS? Why? Show Fisher Equation

Reference no: EM132019625

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