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A ten-year, inflation-indexed bond has a par value of $10,000 and a coupon rate of...

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Finance

A ten-year, inflation-indexed bond has a par value of $10,000 and a coupon rate of 5 percent. During the first six months since the bond was issued, the inflation rate was 4 percent. Based on this information, the coupon payment after six months will be $_______.
a.
255
b.
500
c.
510
d.
260

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