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    Calculating Principal and Coupon amount

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    On January 15, 2010, the U.S. Treasury issued a five-year inflation-indexed note with a coupon of 3%. On the date of issue, the consumer price index (CPI) was 250. By January 15, 2015, the CPI had increased to 300. What principal and coupon payment was made on January 15, 2015?

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    Solution Summary

    Solution describes the steps to calculate principal and coupon amount of a five-year inflation indexed note.