Dillon can buy a fixed-rate bond with a 4% coupon, a $10,000 principal, and five years left to maturity or a TIPS with the same principal and age to maturity with a 2% coupon. Compare the two bonds if inflation runs 3% per year on average. The fixed-rate bond has a better yield. The TIPS has a better yield. Both yields are roughly equivalent. The yields vary with inflation.
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LOL its kanna from miss kobayashis dragon maids and you can call me Anime or Ghoul which ever you prefer
lol ok thank you and yeah her its been awhile since ive seen it ive completed the serious really good ^^ and may i call you Anime
Sure lol and if you have any picture and wnat your name added to it with hearts or stuff talk to meh and i can make it
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@Elsa213
srry i got nothing maybe Elsa can help
ok ^^
@Shadow e.e
Erm... Whale, I googled. e.e I found something. o; ``` tkhunny 4 years ago Sounds like a job for a present value. 10000*0.04/2 = 10000*0.02 = 200 -- Okay, there's the one coupon. Go! ```
thank you Elsa for helping ^^ im srry if its a hard one
Math isn't my best subject, sorry.
its ok its not mine either im almost done with it i just how two things to do and ill get my full credit for math models and no more math for me im almost close to graduating
Congratulations. :D
thank you ^^
imma close this post bc i just guessed lol bc i have a new question
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