Question
U buy a zero coupon bond maturing at 1 year that adjusts its principal it pays using CPI. Assuming that you bought the bond at
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U buy a zero coupon bond maturing at 1 year that adjusts its principal it pays using CPI. Assuming that you bought the bond at PAR ( price equals to the principal you want to pay=100$) and inflation is 3% in the first year how much principal u will get after one year?
103.0
103.5
102.9
NONE of the above
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese
6th Edition
978-1506396811, 150639681X
