EBK FUNDAMENTALS OF CORPORATE FINANCE
EBK FUNDAMENTALS OF CORPORATE FINANCE
4th Edition
ISBN: 8220103631754
Author: Harford
Publisher: PEARSON
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Chapter 15, Problem 6P

On January 15, 2020, the U.S. Treasury issued a 10-year inflation-indexed note with a
Coupon of 6%.On the date of issue, the CPI was 400. By January 15, 2030, the CPI had
decreased to 300. What principal and coupon payment made on January 15, 2030?

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On December 1, 2015, the U.S. Treasury issued a $1,000, 10-year inflation indexed notes with a coupon rate of 2% (paid semi-annually on Dec 1 and June 1).  On the date of issue, the consumer price index (CPI) was 231, but had increased to 259 on December 1, 2020.  What was the amount of the coupon payment made on December 1, 2020? Select one: a. $10.46 b. $11.21 c. $20.00 d. $22.42 e. None of the above.
Suppose on January 15, 2030, the U.S. Treasury issued ten-year inflation indexed note with a coupon of 6%. On the date of issue, the consumer price index (CPI) was 300. If the CPI decreases to 250 by January 15, 2040, what principal and coupon payment will be made on January 15, 2040? (Note: U.S. Treasury pays semi-annual coupons) ww. The CPI will be deppreciated by. (Round to five decimal places.) The principal payment on maturity will be $ The semi-annual coupon payment on maturity (Round to the nearest cent.) will be $ (Round to the nearest cent.)
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