Suppose you buy an inflation-indexed bond that will adjust with inflation and thus pay you $1,500 in real (inflation-adjusted) terms in one year. The real interest rate is 3 percent. What is the present value of the bond? (Round off your answer to the nearest dollar and pick the answer closest to the one you calculate.)

Select one:

a.

$1,530

b.

$1,415

c.

$1,456

d.

$1,471