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compute total returns 1.       A Treasury bond with 5% coupon trades at $125 per $100 face value. Three months later, it trades at $115. 2.       A Treasury inflation-indexed bond with 1% coupon is offered at 90 per $100 real face value. A year later, it trades at 92.25. Assume the CPI has increased 2% during this period. Please I need argunt.for study . Thank you

compute total returns 1.       A Treasury bond with 5% coupon trades at $125 per $100 face value. Three months later, it trades at $115. 2.       A Treasury inflation-indexed bond with 1% coupon is offered at 90 per $100 real face value. A year later, it trades at 92.25. Assume the CPI has increased 2% during this period. Please I need argunt.for study . Thank you

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  • compute total returns

1.       A Treasury bond with 5% coupon trades at $125 per $100 face value. Three months later, it trades at $115.

2.       A Treasury inflation-indexed bond with 1% coupon is offered at 90 per $100 real face value. A year later, it trades at 92.25. Assume the CPI has increased 2% during this period.

Please I need argunt.for study . Thank you

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