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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

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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 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

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