What is the current face value of a $1,000 Treasury inflation-protected security if the reference CPI is 203.19 and the current CPI is 205.47? The coupon rate is 3 percent and the bond was issued two years ago.

Respuesta :

Answer:

$1,011.22

Explanation:

Price = $1000 x (205.47/203.19)

$1000× 1.01122= $1,011.22

Therefore the current face value is $1,011.22