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Indicate whether the following statement is true or false. Provide explanation or calculation to support your answer at least five sentences even if the answer

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Indicate whether the following statement is true or false. Provide explanation or calculation to support your answer at least five sentences even if the answer is TRUE. 1. Inflation-indexed Treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in interest rate over time A ten-year, inflation-indexed bond has a par value of $10,000 and a coupon rate of 5 percent. During the first six months since the bond was issued, the inflation rate was 2 percent. Based on this information, the coupon payment after six months will be $250. a. True b. False Explanation

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