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On July 1, 2014, The Govemment of Canada issues a 30-year real return bond with a 4.5% semi-annual coupon. The consumen price index (CPI) on that date is 103.15. What is the face value and coupon payment on this bond on July 1, 2017, if the CPI on that date is 109.37? A. face value $1031.50; coupon payment $23.21 OB. face value $1093.70; coupon payment $23.86 DC. face value $1060.30; coupon payment $23.86 OD. face value $1093.70; coupon payment $24.61 DE. face value $1060.30; coupon payment $24.61

On July 1, 2014, The Govemment of Canada issues a 30-year real return bond with a 4.5% semi-annual coupon. The consumen price index (CPI) on that date is 103.15. What is the face value and coupon payment on this bond on July 1, 2017, if the CPI on that date is 109.37? A. face value $1031.50; coupon payment $23.21 OB. face value $1093.70; coupon payment $23.86 DC. face value $1060.30; coupon payment $23.86 OD. face value $1093.70; coupon payment $24.61 DE. face value $1060.30; coupon payment $24.61

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter20: Hybrid Financing: Preferred Stock, Warrants, And Convertibles
Section: Chapter Questions
Problem 1P: Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually...
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On July 1, 2014, The Govemment of Canada issues a 30-year real return bond with a 4.5% semi-annual coupon. The consumer price index (CPI) on that date is 103.15. What is the face value and coupon payment on this bond on July 1, 2017, if the CPI on that date is 109.37? O A. face value $1031.50; coupon payment $23.21 DB. face value $1093.70; coupon payment $23.86 DC. face value $1060.30; coupon payment $23.86 OD. face value $1093.70; coupon payment $24.61 DE. face value $1060.30; coupon payment $24.61
Transcribed Image Text:On July 1, 2014, The Govemment of Canada issues a 30-year real return bond with a 4.5% semi-annual coupon. The consumer price index (CPI) on that date is 103.15. What is the face value and coupon payment on this bond on July 1, 2017, if the CPI on that date is 109.37? O A. face value $1031.50; coupon payment $23.21 DB. face value $1093.70; coupon payment $23.86 DC. face value $1060.30; coupon payment $23.86 OD. face value $1093.70; coupon payment $24.61 DE. face value $1060.30; coupon payment $24.61
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