answer:- $32.44, $1,179.72 respectively
Par value = current CPI ÷ original reference CPI
= 209.4 ÷ 177.5 (* $1000)
= 1.17972 * $1000
= $1,179.72
Interest payment = 1/2 * 5.5% * 1,179.72
= 1/2 * 64.88
= $32.44
QUESTION 5 TIPS Interest and Par Value A 5.50 percent TIPS has an original reference CPI...
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