a. Bhat 4.37

b. Bhat 5.00

c. Bhat 4.00

d. Bhat 4.20

Inter Financial Management, 8e (Eun) Chapter 8 Management of Transaction Exposure = An inflation-indexed 3-year, annual 4% coupon bond issued by Thailand at par (Present Value =Par Value 100 Thai Bhat initially). Inflation in Thailand increases by 5 % in year 1, by 4 % in year 2, and zero % in year 3. What is the coupon amount in Thai Bhat in year 2