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Suppose that an 8% coupon CP-linked bond paying annual coupons is issued with a face value of $100 and a term of five years. Suppose

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Suppose that an 8% coupon CP-linked bond paying annual coupons is issued with a face value of $100 and a term of five years. Suppose that inflation, as measured by the CPI, is 2% during first two years and then 5% for the remaining three years. What are the face value and the coupon payment for the second year? Use the editor to format your

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