A Ten-Year, Inflation-Indexed Bond Has a Par Value of $10,000

question 32

Multiple Choice

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 2 percent. Based onthis information, the coupon payment after six months will be $____.

• A) 250
• B) 255
• C) 500
• D) 510

---

Definitions:

Paired Factors

Fundamental entities in genetics that occur in pairs and determine specific characteristics or traits of an organism.

Gametes

Sexual reproduction cells that unite during fertilization to form a new organism, with sperm being the male gamete and eggs the female gamete.

Genotype

The set of genes in our DNA which is responsible for a particular trait, as opposed to the physical expression of those genes which is known as the phenotype.

Phenotype

The collection of traits that can be seen in a person, which emerge from how their genetic makeup interacts with their surroundings.