Answer:
$99
Explanation:
Treasury inflated protected security is defined as type of security issued by the government that is indexed for inflation. This reduces the risk to investors as a result of reduced purchasing power from inflation.
In this scenario Josh is paying $3,000 for a treasury inflation-protected security.
If the value of Josh's bond increases by 10% as a result of increase in consumer price, we will calculate the new bind price
New bond value= 1.10 * 3,000= $3,300
The interest paid by Jos is 3%
New interest= 0.03 * 3,300= $99
So Josh will now pay $99 as interest
