Question
A TIPS bond issued by the Treasury Department was issued with an ANNUAL coupon of 5%. The bond has a par value of $1,000 and
A TIPS bond issued by the Treasury Department was issued with an ANNUAL coupon of 5%. The bond has a par value of $1,000 and will mature in 10 years. Suppose that inflation during the first year of the bonds life was 3%. What is the new coupon payment for this bond?
| $50.97 | ||
| $51.50 | ||
| $53.00 | ||
| $81.50 |
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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
