Melissa purchases a 1-year $10 000 Government of Canada real return bond that has a coupon rate

Question:

Melissa purchases a 1-year $10 000 Government of Canada real return bond that has a rate of 6 percent, payable semi-annually. Inflation increases 2 percent over the next six months and then 1.5 percent in the following six- month period. Determine the value of the first semi-annual payment. Then determine the final payment and the of the bond at maturity.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...