An inflation-indexed treasury bond has a par value of 1000, Financial Management

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An inflation-indexed treasury bond has a par value of 1000

An inflation-indexed Treasury bond has a par value of $1,000 and a coupon rate of 2 percent. An investor purchases this bond and holds it for one year. During the year, the consumer price index increases by .25 percent every six months. What are the total interest payments the investor will receive during the year?

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Financial Management: An inflation-indexed treasury bond has a par value of 1000

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Financial Management: An inflation-indexed treasury bond has a par value of 1000

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