Answer:
Step-by-step explanation:
Zero coupon bonds do not earn interest. It is usually sold at a big discount and its redeemable value if beyond its face value will only be redeemed once it reaches maturity.
TIPS stands for Treasury Inflation Protected Securities.
TIPS:
2,500 x 2% x 5 years = 250
2,500 + 250 = 2,750
Zero coupon bond after 5 years: 2,500
Maximum real value of his bonds if he sells them today.
2,750 + 2,500 = 5,250
WIth the parameterization
we end up with
We also have
So in the line integral, we get
Nothing multiplies into 12 and adds into 17. Factors of 12 are 1,2,3,4,6, and 12. None of those add up to 17.
Answer:
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