During the year the consumer price index increases by 1, Finance Basics

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During the year the consumer price index increases by 1

Inflation-Indexed Treasury Bond:

An inflationindexed 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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Finance Basics: During the year the consumer price index increases by 1

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Finance Basics: During the year the consumer price index increases by 1

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