Assume you hold a TIPS with current face 10,000,000. Inflation is going to be 7%...

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Assume you hold a TIPS with current face 10,000,000. Inflation is going to be 7% next year. What is going to be the face adjustment for the TIPS? Explain the concept of Break even for TIPS? If you think that inflation is 7% and the break even is 2% do you think the TIPS is overpriced or under priced? Assume you hold a TIPS with current face 10,000,000. Inflation is going to be 7% next year. What is going to be the face adjustment for the TIPS? Explain the concept of Break even for TIPS? If you think that inflation is 7% and the break even is 2% do you think the TIPS is overpriced or under priced

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