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Question 11 10 Points Suppose that an 8% coupon CPI-linked bond paying annual coupons is issued with a face value of $100 and a term
Question 11 10 Points Suppose that an 8% coupon CPI-linked bond paying annual coupons is issued with a face value of $100 and a term of five years. Suppose that inflation, as measured by the CPI, is 2% during first two years and then 5% for the remaining three years. What are the face value and the coupon payment for the second year? Use the editor to format your answer Question 12 10 Points Consider the end of day prices for Wesfarmer (WES) for Monday through Thursday. Day WES price (end of day) Monday $22.00 Tuesday $24.80 Wednesday $25.90 Thursday $26.00 Suppose an investor short sells WES (sell on Monday and buy back on Thursday) over this period, calculate their continuously compounded return to the investor. Use the editor to format your
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