Question
A U.S. Treasury inflation protection security is paying 3% coupon with face value of $1,000. If you expected inflation will be 4% the next year
A U.S. Treasury inflation protection security is paying 3% coupon with face value of $1,000. If you expected inflation will be 4% 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. | $22.12
| |
| B. | $15.00
| |
| C. | $20.61
| |
| D. | $32.14 |
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
