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Suppose that on January 15, 2020, the Canadian government issued a ten-year inflation indexed note with a coupon of 6%. On the date of issue,
Suppose that on January 15, 2020, the Canadian government issued a ten-year inflation indexed note with a coupon of 6%. On the date of issue, the CPI was 400. By January 15,
2030, the CPI index had decreased to 300. What principal and coupon payment was made on January 15, 2030? Assume that the principal payment is protected against falling below
par value (but the coupon payment is not similarly protected). Assume that the face value is $1000.
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