On January 15, 2010, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 3%.

Question:

On January 15, 2010, the U.S. Treasury issued a five-year inflation-indexed note with a of 3%. On the date of issue, the consumer price index (CPI) was 250. By January 15, 2015, the CPI had increased to 300. What principal and payment was made on January 15, 2015?

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...