Question: please show complete work. Thank you. 5) US Treasury issues an inflation-adjusted bond with a par value of $5000 and with annual coupons at the

please show complete work. Thank you.

5) US Treasury issues an inflation-adjusted bond with a par value of $5000 and with annual coupons at the end of each year for 5 years. The initial coupon rate is 5% and each coupon is 3% greater than the preceding coupon (inflation adjusted). The bond is redeemed for $6000 at the end of 5 years. Find the price an investor should pay to produce effective yield rate of 8%

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