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Suppose on January 15, 2013, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 5%. On the date of issue, the
Suppose on January 15, 2013, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 5%. On the date of issue, the consumer price index (CPI) was 267. By January 15, 2018, the CPI had increased to 317. What principal and coupon payment was made on January 15, 2018? (Note: U.S. Treasury pays semi-annual coupons) The CPL index appreciated by (Round to five decimal places.) The principal amount of the bond increased to $. (Round to the nearest cent.) The semi-annual coupon payment is $ (Round to the nearest cent.).
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