Question: Multiple Choice Question Assume a $ 1 , 0 0 0 Treasury inflation - protected bond has a 2 percent coupon and a face value

Multiple Choice Question
Assume a $1,000 Treasury inflation-protected bond has a 2 percent coupon and a face value at issuance of $1,000. The reference CPI is 202.34 and the current
CPI is 203.18. What do you know for certain about this bond?
The current semiannual interest payment is $10.
The current par value is $1,000 but the coupon rate is currently greater than 2 percent.
The current par value is $1,000.
The coupon rate is still 2 percent but the interest payments have increased.
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 Multiple Choice Question Assume a $1,000 Treasury inflation-protected bond has a

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