What is the current value of a $1000 Treasury inflation-protected security if the reference CPI is 203.19 and the current CPI is

Question

2 years ago

9

205.47? The coupon rate is 3 percent and the bond was issued two years ago.

1 answer:

faust18 [17] · Answer 1 · 2022-07-08T02:57:04+03:00

Answer:

the current value fo $1,000 is $1,011.22

Explanation:

The computation of the current value of $1,000 is shown below:

Current value

= Price × (Current CPI ÷ Reference CPI) × 100

= $1,000 × (205.47 ÷ 203.19)

= $1,011.22

We basically applied the above formula so that the current value would come

Hence, the current value fo $1,000 is $1,011.22