A 8-year bond has a par value of 1000 and a coupon rate of


A 8-year bond has a par value of $1,000 and a coupon rate of 5 percent. During the first six months after the bond was Issued, the inflation rate was 1.3 percent. By how much does the principal of the bond increase? What is the coupon payment after six months?

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Financial Management: A 8-year bond has a par value of 1000 and a coupon rate of
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