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In February 9th 2011 the Swedish Riksglden issued a 10-year inflation-indexed note (TIPS) with semiannual coupon payments of 5% APR, and a face value of
In February 9th 2011 the Swedish Riksglden issued a 10-year inflation-indexed note (TIPS) with semiannual coupon payments of 5% APR, and a face value of 1000 SEK. At that time the CPI (Consumer Price Index) was 213. By February 9th 2021, the CPI was 275 and the face value and the last coupon was payed out. a. What was the total amount paid out at 9th of February 2021? Answer in SEK with two decimals (i.e. 750.12) b. What if the CPI on February 9th 2021 instead was 210, what would be the total amount paid out at that same date? Answer in SEK with two decimals (i.e. 750.12)
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