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A $ 1 , 0 0 0 Treasury inflation - protected security is currently selling for $ 9 6 5 and carries a coupon interest
A $ Treasury inflationprotected security is currently selling for $ and carries a coupon interest rate of percent. a If you buy this bond, how much will you receive for your first interest payment, assuming no interest adjustment to principal during this time period? b If there's a percent increase in inflation, what will be the new par value of the bond? c What is your new semiannual interest payment? d What would the par value be at maturity, assuming a percent annual inflation rate and tenyear maturity period? Click on the table icon to view the FVIF table a If you buy this bond, assuming no interest adjustment to principal during this time period, your first interest payment would be $ Round to the nearest cent. More info tableCompound Sum of $FVIF
A $ Treasury inflationprotected security is currently selling for $ and carries a coupon interest rate of percent.
a If you buy this bond, how much will you receive for your first interest payment, assuming no interest adjustment to principal during this time period?
b If there's a percent increase in inflation, what will be the new par value of the bond?
c What is your new semiannual interest payment?
d What would the par value be at maturity, assuming a percent annual inflation rate and tenyear maturity period? Click on the table icon to view the FVIF table
a If you buy this bond, assuming no interest adjustment to principal during this time period, your first interest payment would be $
Round to the nearest cent.
More info
tableCompound Sum of $FVIF
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