问题如下:
A five-year semi-annual capital-indexed bond is issued with the coupon rate of 8%, par value of $1000. It is indexed to the inflation rate of Unite States. Assume the inflation rate is increased by 3%, which of the following is least appropriate?
选项:
A.The coupon payment becomes $41.2.
B.The principal value becomes $1030.
C.The coupon rate is increased to 10%.
解释:
C is correct.
A capital-indexed bond remains the coupon rate constant and the principal value increases in line with the inflation rate during the bond's life. Thus, the interest payments and the principal value are adjusted for the inflation. Coupon rate is still 8% and principal value becomes 1,000×(1+3%)=$1,030. The coupon payment equals $1030×8%×(1/2)=$41.2.
capital-indexed bond的principal期间不摊销吧,是到期后一次性付清吧?只是期间计算coupon payment时用到的principal repayment 会根据CPI来调整