Suppose on January 15, 2013, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 4%. On the date of issue, the consumer price index (CPI) was 237. By January 15, 2018, the CPI had increased to 307. What principal and coupon payment was made on January 15, 2018? (Note: U.S. Treasury pays semi-annual coupons) Question content area bottom Part 1 The CPI index appreciated by enter your response here. (Round to five decimal places.) Part 2 The principal amount of the bond increased to $enter your response here. (Round to the nearest cent.) Part 3 The semi-annual coupon payment is $enter your response here. (Round to the nearest cent.)
Suppose on January 15, 2013, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 4%. On the date of issue, the consumer price index (CPI) was 237. By January 15, 2018, the CPI had increased to 307. What principal and coupon payment was made on January 15, 2018? (Note: U.S. Treasury pays semi-annual coupons) Question content area bottom Part 1 The CPI index appreciated by enter your response here. (Round to five decimal places.) Part 2 The principal amount of the bond increased to $enter your response here. (Round to the nearest cent.) Part 3 The semi-annual coupon payment is $enter your response here. (Round to the nearest cent.)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 10CQ
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Suppose on January 15, 2013, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 4%. On the date of issue, the
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