Question: The US Treasury issues a bond with the following features Face Value = $1,000 Maturity in years = 7 Coupon Rate = 6.00% The bond's

The US Treasury issues a bond with the following features Face

The US Treasury issues a bond with the following features Face Value = $1,000 Maturity in years = 7 Coupon Rate = 6.00% The bond's cash-flows are in Nominal terms. Coupons are paid annually You would like to earn 3.00% in real terms. If you expect inflation to be 4.00% over those same years, how much would you pay for the bond? $946.11 $939.89 $1.186.91 $1,120.04

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