How much would she have received in interest during the year

Reference no: EM131227253

Inflation-Indexed Treasury Bond:

Assume that the U.S. economy experienced deflation during the year and that the consumer price index decreased by 1 percent in the first six months of the year and by 2 percent during the second six months of the year.

If an investor had purchased inflation-indexed Treasury bonds with a par value of $10,000 and a coupon rate of 5 percent, how much would she have received in interest during the year?

Reference no: EM131227253

Questions Cloud

How can a tool such as splunk assist with this : Propose a "plan" for your network log management program to your boss. Who will review your logs? How often will they be reviewed? How will you protect your log files? What recommendations will you make for log aggregation and correlation? How can..

Optimal consumption-leisure combination : 1. How does an increase in wage rate change the optimal consumption-leisure combination chosen by the worker? State income effect and substitution effect.

Explain should the ceo be concerned for given case : The owners of the building that was damaged, the local resident who was injured and the owner of the car are all threatening to sue Building Pty Ltd in negligence. Should the CEO be concerned? Explain your reasoning

What is the labor participation rate : What is the Labor participation rate % for this economy ( Enter your response rounded to one decimal).

How much would she have received in interest during the year : If an investor had purchased inflation-indexed Treasury bonds with a par value of $10,000 and a coupon rate of 5 percent, how much would she have received in interest during the year?

Benefits are realized at the beginning : a) Calculate the net present value assuming that the benefits are realized at the end of each of the three years. b) Calculate the net present value assuming that the benefits are realized at the beginning of each of the three years.

Everywhere a monetary phenomenon : Hyperinflation: Although inflation is always and everywhere a monetary phenomenon, explain why the initial source of a hyperinflation is typically related to the fiscal policy.

Justify the main reasons that the selected strategies : Using the four (4) approaches to job design, create two (2) strategies that the organization can implement to attract and select qualified applicants for the Customer Service Representative position. Justify the main reasons that the selected stra..

New technologies a sociocultural phenomenon : How are purchases of new technologies a sociocultural phenomenon? How does their consumption create place-specific identities?

User Account

All Pages