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On July 1,2014,The Government of Canada Issues a 30-Year Real

Question 38

Multiple Choice

On July 1,2014,The Government of Canada issues a 30-year real return bond with a 4.5% semi annual coupon.The consumer price index (CPI) on that date is 103.15.What is the face value and coupon payment on this bond on July 1,2017 id the CPI on that date is 109.37?


A) face value $1060.30; coupon payment $23.86
B) face value $1093.70; coupon payment $24.61
C) face value $1060.30; coupon payment $24.61
D) face value $1093.70; coupon payment $23.86
E) face value $1031.50; coupon payment $23.21

Correct Answer:

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