A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate

Question:

A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually and the general inflation rate is 6% per year, find the actual-and constant-dollar amount (in time-0 dollars) of the 15th interest payment on the bond.