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Fixed_Income_Chapter_3 - 1 $100,000.Whichofthe a $97,170.00...

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Chapter 3 – Overview of Bond Sector and Instruments 1) A treasury security is quoted at 97-17 and has a par value of $100,000. Which of the  following is its quoted dollar price 2) An investment holds $100,000 (par value) worth of Treasury Inflation Protected  Securities (TIPS) that carry a 2.5% semiannual pay coupon. If the annual inflation rate is  3%, what is the inflation-adjusted principal value of the bonds after 6 months? 3) An investor holds $100,000 worth of TIPS currently trading at par. The coupon rate of  4% is paid semiannually, and the annual inflation is 2.5%. What coupon payment will the  investor receive at the end of the first 6 months? 4) A Treasury note (T-note) principal strip has 6 months remaining to maturity. How is its  price likely to compare to a 6-month Treasury bill (T-bill) that has just been issued? The 
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