An inflation-indexed 3-year, annual 4% coupon bond issued by Thailand at par (Present Value =Par Value =
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Question:
An inflation-indexed 3-year, annual 4% coupon bond issued by Thailand at par (Present Value =Par Value = 100 Thai Bhat initially). Inflation in Thailand increases by 5 % in year 1, by 4 % in year 2, and zero % in year 3.What is the coupon amount in Thai Bhat in year 2?
a.Bhat 4.37
b.Bhat 4.00
c.Bhat 5.00
d.Bhat 4.20
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