You buy a tips at issue at par for $1,000. the bond has a 3% coupon. inflation turns out to be 2%, 3%, and 4% over the next 3 years. the total annual coupon income you will receive in year 3 is
a.$30
b.$33
c.$32.78
d.$30.90

C) $32.78

Explanation:

Treasury Inflation Protected Securities (TIPS) are US treasury bonds that are indexed to inflation. That means that the coupon paid is adjusted to include the inflation rate.

coupon for year 3 = ($1,000 x 3%) x (1 + inflation rate year 1) x (1 + inflation rate year 2) x (1 + inflation rate year 3) = $30 x 1.02 x 1.03 x 1.04 = $32.78

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.