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Pakistan issues an inflation-indexed 3-year, 4% annual coupon bond issued at par (Present Value =Par Value = 1000 Pakistan rupees. Inflation in Pakistan increases by
Pakistan issues an inflation-indexed 3-year, 4% annual coupon bond issued at par (Present Value =Par Value = 1000 Pakistan rupees. Inflation in Pakistan increases by 5 % in year 1, by 4 % in year 2, and zero % in year 3.What is the coupon payment on the bond in Pakistan Rupees in year 2?
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