Question: Formulas 1 = E(INF) + besp - : - BINH) 4 (1-1) or netw(1-7),T=1 E(RO) on non benchmark Border=Ry+RP. YT=SP-PPPP) x 365), T bill discount

 Formulas 1 = E(INF) + besp - : - BINH) 4

Formulas 1 = E(INF) + besp - : - BINH) 4 (1-1) or netw(1-7),T=1 E(RO) on non benchmark Border=Ry+RP. YT=SP-PPPP) x 365), T bill discount (Par-PPyPax 360) Y-(SP PP/PP) x 360m)Yet(SP-PP + Interest) PP Ympo {[(SP PP/PP]* 360n). Y, 0+) a change in 5) - 1 R=(SP- INV - Lom+D) INV R Profit levestmeot A ten year, Inflation Indexed bond has a par value of $10,000 and a coupon patrons During the first ste months since the bond was sed, the inflation rate was a X. Based on this information the principal of the band is increased to and the coupon payment after six inonths will be s 30,000, 500 10.000.250 10.200255 10.00 500 10300,25750

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