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

Question:

You purchase a U.S. Treasury inflation-indexed bond at of $1,000. The bond offers a rate of 6 % paid semiannually. During the first six months that you hold the bond, prices in the U.S. rise by 2%. What is the new of the bond, and what is the amount of your first payment?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...