Assuming you have an inflation linker that pays an annual coupon of 2.5% every half...
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Accounting
Assuming you have an inflation linker that pays an annual coupon of 2.5% every half a year and the real yield is 3%. What will be the price of the if it matures after 3.5 assuming inflation is -2% principal of 100 that you bought directly from the government.
Hint: Use the magic formula first and then decide whether u need an adjustment
98.35
96.38
95.3
NONE OF THE ABOVE
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