For this question, the inflation rates are actual inflation levels (so a 6-month inflation rate increase of 3% increases par by 3%, not 1.5%.) You have a semiannual Treasury inflation-protected security, which is 1000 par and sells at par, with a 4% coupon rate. If the inflation rates are: 1% for the first 6 months and then 1.9% for the second, 0% for the third, and 1% for the fourth 6 months, find: -the individual nominal payments made for each time period Report the total amount paid including par (all coupons and par, total dollar value)

For this question, the inflation rates are actual inflation levels (so a 6-month inflation rate increase of 3% increases par by 3%, not 1.5%.) You have a semiannual Treasury inflation-protected security, which is 1000 par and sells at par, with a 4% coupon rate. If the inflation rates are: 1% for the first 6 months and then 1.9% for the second, 0% for the third, and 1% for the fourth 6 months, find: -the individual nominal payments made for each time period Report the total amount paid including par (all coupons and par, total dollar value)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter22: International Financial Management

Section: Chapter Questions

Problem 6P

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For this question, the inflation rates are actual inflation levels ( so a 6-month inflation rate increase of 3% increases par by 3%, not 1.5%.) You have a semiannual treasury inflation protected security, which is 1000 par and sells at par, with a 4% coupon rate. If the inflation rates are: 2% for the first 6 months and then 0.4% for the second, 1% for the third and 0% for the fourth 6 months, find: -the individual nominal payments made for each time period Report the total amount paid including par (all coupons and par, total dollar value) (do not use $ in the answer) Note: Correct answer is 1,116.5752. Please explain and show step by step?
Note: For this question the inflation rates are actual inflation levels ( so a 6 month inflation rate increase of 3% increases par by 3%, not 1.5%.) You have a semiannual treasury inflation protected security, which is 1000 par and sells at par, with a 4% coupon rate. If the inflation rates are: 1% for the first 6 months and then 0.3% for the second, 0% for the third and 0% for the fourth 6 months, find: -the individual nominal payments made for each time period Report the total amount paid including par (all coupons and par, total dollar value) (do not use $ in the answer) Note: Can you show the calculation without excel
For this question the inflation rates are actual inflation levels ( so a 6 month inflation rate increase of 3% increases par by 3%, not 1.5%.) You have a semiannual treasury inflation protected security, which is 1000 par and sells at par, with a 4% coupon rate. If the inflation rates are: 2% for the first 6 months and then 0.4% for the second, 1% for the third and 0% for the fourth 6 months, find: -the individual nominal payments made for each time period Report the total amount paid including par (all coupons and par, total dollar value) (do not use $ in the answer) Please use 4 decimal places in your response
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