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

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Definitions:

Homer Plessy

An African American man whose 1896 Supreme Court case, Plessy v. Ferguson, upheld the constitutionality of racial segregation under the "separate but equal" doctrine.

Class Bias

A tendency to favor individuals from a certain social class over others, leading to unequal treatment based on socioeconomic status.

Brownsville, Texas

A city in the southernmost part of Texas, United States, located on the border with Matamoros, Mexico.

Booker T. Washington

An influential African American educator, author, and orator in the late 19th and early 20th centuries, known for his advocacy of vocational training and racial uplift.