Linkers: There is a freshly issued 10year inflationlinked bond with a face value of 1,000....
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Accounting
Linkers: There is a freshly issued 10year inflationlinked bond with a
face value of 1,000. Inflation in the coming year is 3%. What is the principal at the beginning
and end of this year and the coupon this year and next year, for A) a zerocoupon inflation
indexed bond? B) a bond with 5% annual coupon rate that is interestindexed, and C) a
bond with a 5% coupon rate that is capitalindexed?
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