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 6 percent. An investor purchases this bond and holds it for one year. During the year, the consumer price index increases by 1 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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