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Consider an investor who purchases a Treasury inflation - indexed note with an original principal amount of $ 1 0 0 , 0 0 0
Consider an investor who purchases a Treasury inflationindexed note with an original principal amount of $ a percent annual coupon rate coupon is paid semiannually and years to maturity. The semiannual inflation rate during the months ending months before the first coupon payment the month lag is necessary to allow for the release of the official CPI figures is percent. Over the next month period inflation is percent. Calculate the adjusted principal amount for the second coupon payment.
Consider an investor who purchases a Treasury inflationindexed note with an original principal amount of $ a percent annual coupon rate coupon is paid semiannually and years to maturity. The semiannual inflation rate during the months ending months before the first coupon payment the month lag is necessary to allow for the release of the official CPI figures is percent. Over the next month period inflation is percent. Calculate the adjusted principal amount for the second coupon payment.
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