What are total interest payments the investor

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Reference no: EM131978913

An inflation-indexed Treasury bond has a par value of $5,000 and a coupon rate of 7%. An investor purchases this bond and holds it for one year. During the year, the consumer price index decreases by 1.5% the first six months of the year, and by 2.25% during the second six months of the year due to a de ation. What are the total interest payments the investor will receive during the year?

Reference no: EM131978913

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