Hi…I noticed a small error in this explanation…i think…
Here’s the sample question:
It says CPI reported at 2%, so the par value will fall by 2 %. I believe the adjusted par value have "increased by 2% resulting it to be $1,020…according to the explanation. Not sure if that part is a typo.
To my understanding if the CPI reported a decrease of 2%…then the par value will fall by 2%…which the adjusted par value be $980.
Also…the quiz question stated that the CPI is reported at 2%…but wasn’t specific if it was a rise or a fall…but I’m assuming it’s a rise according to the explanation of the answer.
here’s the link: