Assuming you have an inflation linker that pays an annual coupon of 2.5% every half a year and the real yield is 3%. What will be the price of the if it matures after 3.5 assuming inflation is -2% principal of 100 that you bought directly from the government. Hint: Use the magic formula first and then decide whether u need an adjustment 98.35 96.38 95.3 NONE OF THE ABOVE

Assuming you have an inflation linker that pays an annual coupon of 2.5% every half a year and the real yield is 3%. What will be the price of the if it matures after 3.5 assuming inflation is -2% principal of 100 that you bought directly from the government. Hint: Use the magic formula first and then decide whether u need an adjustment 98.35 96.38 95.3 NONE OF THE ABOVE

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 1WNG

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