Melissa purchases a one-year $30,000 Government of Canada real return bond that has a coupon rate of 7percent, payable semi-annually. Inflation increases 2.00 percent over the next six months and then 1.50 percent in the following six-month period.

a) The value of the first semi-annual coupon payment is ____________

b) The par value of the bond at maturity is _________

c)The value of the final coupon payment is _________

Answer rating: 100% (QA)

Solution Since the bond is real return bond hence pricipal will be adjusted for in... View the full answer