Linkers: There is a freshly issued 10year inflationlinked bond with a

face value of 1,000. Inflation in the coming year is 3%. What is the principal at the beginning

and end of this year and the coupon this year and next year, for A) a zerocoupon inflation

indexed bond? B) a bond with 5% annual coupon rate that is interestindexed, and C) a

bond with a 5% coupon rate that is capitalindexed?