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Question
John bought an inflation-indexed security for $10,000 in January The security promises an annual interest rate of 5 percent and makes payments twice a year. If the value of the inflation index in January 2014 was 106 and its value in July 2014 was 105, John will receive an interest income of ____.a. $504.76
b. $226.40
c. $182.72
d. $368.56
Answer
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