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Suppose a gilt and an index-linked gilt maturing in 2055 on the same date have a coupon rate of 4.25% and 1.25%, and a redemption
Suppose a gilt and an index-linked gilt maturing in 2055 on the same date have a coupon rate of 4.25% and 1.25%, and a redemption yield of 3.40% and -0.06%, respectively. Compute break-even inflation (up to three decimals)
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To compute the breakeven inflation rate we need to compare the yields of the gilt and the indexlinke...
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Business Mathematics In Canada
Authors: Ernest Jerome
7th edition
978-0071091411, 71091416, 978-0070009899
