Inflation-indexed Treasury bond with a 5% coupon rate is issued at $1,000. If inflation in the year after issuance is 6%,
A)
the new coupon rate will be 11%.
B)
the new redemption value is $1,060.
C)
the new redemption value is $1,100.
D)
the bond is redeemed and a new bond with a 6% coupon is issued.
B
Business
You might also like to view...
To calculate break-even volume, operating income in the formula is ________
A) multiplied by 100 B) equal to zero C) equal to industry operating income D) equal to variable costs E) equal to fixed costs
Business
Product demonstrations and free samples often require the use of an intermediary for success in a foreign market
Indicate whether the statement is true or false
Business