Assume a $1,000 Treasury inflation-protected bond has a 2 percent coupon and a face value at issuance of $1,000. The reference CPI is 202.34 and the current CPI is 203.18. What do you know for certain about this bond?

Question

04-03-2020
Business

contestada

Assume a $1,000 Treasury inflation-protected bond has a 2 percent coupon and a face value at issuance of $1,000. The reference CPI is 202.34 and the current CPI is 203.18. What do you know for certain about this bond?

Respuesta :

Otras preguntas

What happens if Cecil goes any number of feet in one direction and then goes the same number of feet the other direction? Where does he end up? How do you know?

Why is September 16 so important for Mexico

How does mold obtain vital nutrients

7849 rounded with the 7 underlined

A word for the ending of a story in which things are wrapped up

What year came after 184 B.C?

Lee has a jar of 100 pennies. she adds groups of 10 pennies to the jar. she adds 5 groups. what numbers does she say?

Which describes a major challenge facing the builders of the transcontinental railroad?

write four numbers that round to 700,000 when rounded to the nearest hundred thousand

Point A is at (3, 2.7) and point B is at (3, 1.4) on a coordinate grid. The distance between the two points is ____. Input numbers and decimal point only, such

emmanuelkossy emmanuelkossy · Answer 1 · 2020-03-06T04:16:22+01:00

Answer:

The bond has a 2 percent coupon and a face value at issuance of $1000 which is the same with the Treasury inflation-protected bond. However, the reference Consumer Price Index (CPI) which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services has increased from 202.34 to 203.18. From this deduction, what I know for certain about this bond is that the interest payment have increased and the coupon rate is still 2 percent.