What is the new par value of the bond

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You purchase a U.S. Treasury inflation-indexed bond at par value of $1,000. The bond offers a coupon rate of 6 percent paid semiannually.

During the first six months that you hold the bond, prices in the United States rise by 2 percent. What is the new par value of the bond, and what is the amount of your first coupon payment?

Reference no: EM131329245

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