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Question 7 (1 point) The government of Mooselandia issues 10-year inflation indexed bonds (MIIBS) with a unique feature. The principal is linked to the CPI

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Question 7 (1 point) The government of Mooselandia issues 10-year inflation indexed bonds (MIIBS) with a unique feature. The principal is linked to the CPI in the same way as Canadian inflation linked bonds, but the semi-annual coupons on MIIBS are fixed. There is no downside protection on the prihcipal. In 2008, the CPI in Mooselandia was 450. In 2018, the CPI was 640. If the coupon rate on MIIBS was 6%, how large is the final payment on the MIIB at maturity? 1000 1422 1452 1465 733

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