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Home > Practice Exams > Level 1 (06/2011): Study Session 15 - Fixed Income Investments: Basic Concepts. > Practice Exam

Question 1 of 30
A U.S. Treasury Inflation Protected Security has been issued with a real rate of 1.75%. In the first six months of the year inflation has equaled a 3% annualized rate. If the face value of the security is $10,000, what is the interest payment to the investor?
A. $88.81
B. $177.63
C. $87.50