Your purchase a us treasury inflation-indexed bond at par


Your purchase a U.S. Treasury inflation-indexed bond at par value of $1,000. The bond offers a coupon rate of 6% paid semi annually. During the first six months that you hold the bond, prices in the United Stees rise by 2%. What is the new par value of the bond, and what is the amount of your first coupon?

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Financial Management: Your purchase a us treasury inflation-indexed bond at par
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