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Next, you look into the potential of issuing a bond to raise debt funding. To get an idea of potential bond performance, rates, and other
Next, you look into the potential of issuing a bond to raise debt funding. To get an idea of potential bond performance, rates, and other data, you decide to look at the US Treasury bonds market. You find that in January of 2010, the US treasury issued a 10-year inflation-indexed note with a coupon of 4%, which pays semiannually. When the bond was issued, the CPI was 400, but now, 10 years later, the CPI is at 300. Assume that the face value is $1000 and that the bond is protected against deflation. What was the principle and coupon payment made on the bond in 2020? How does performance of this bond relate to potential performance of your bond, should Rogue use this method of financing? CPI Index Depreciation: Coupon Payment: Principle Amount: How does performance of this bond relate to potential performance of your bond, should Rogue use this method of financing? (Use 3 sentences to address the question.)
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