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On July 1, 2014, The Government of Canada issues a 30-year real return bond with a 4.5% semi-annual coupon. The consumer price index (CPI) on
On July 1, 2014, The Government of Canada issues a 30-year real return bond with a 4.5% semi-annual coupon. The consumer price index (CPI) on that date is 103.15. What is the face value and coupon payment on this bond on July 1, 2017, if the CPI on that date is 109.37? W A. face value $1031.50; coupon payment $23.21 B. face value $1093.70; coupon payment $23.86 C. face value $1060.30; coupon payment $23.86 D. face value $1093.70; coupon payment $24.61 E. face value $1060.30; coupon payment $24.61
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