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An inflationindexed Treasury bond has a par value of $5000 and a coupon rate of 7 percent An investor purchases this bond and holds it for one year During the year the consumer price index

An inflation-indexed Treasury bond has a par value of $5,000 and a coupon rate of 7 percent. An investor purchases this bond and holds it for one year. During the year, the consumer price index decreases by 1.5 percent first six months of the year, and by 2.25 percent during the second six months of the year due to a deflation. What are the total interest payments the investor will receive during the year?

 

Apr 03 2020 View more View Less

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