Question
Europe issues an inflation-indexed 3-year, 4% annual coupon bond issued at par (Present Value =Par Value = 1000 Europe euro initially). Inflation in Europe increases
Europe issues an inflation-indexed 3-year, 4% annual coupon bond issued at par (Present Value =Par Value = 1000 Europe euro initially). Inflation in Europe increases by 5 % in year 1, by 4 % in year 2, and zero % in year 3.What is the maturity / face value of the bond in European euro at end of year 3?
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
