Question
A U.S. Treasury inflation protection security is paying 2% coupon with face value of $1,000. If you expected inflation will be 5% the next year
A U.S. Treasury inflation protection security is paying 2% coupon with face value of $1,000. If you expected inflation will be 5% the next year and 3% after then. Whats the coupon payment at the end of the send year(note, assuming annual coupon payment security)? A. $20.12 B. $10.00 C. $21.63 D. $30.15
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
