You purchase $100,000 of par value of a TIPS with a real rate of 4.5%. Over the
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You purchase $100,000 of par value of a TIPS with a real rate of 4.5%. Over the first 6 months after issuance the annualized inflation rate is 8.2% and over the following six months it is 8.5%. What is the amount of the coupon payment you receive at the end of the year? Assume semiannual coupon payments.
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Managerial Economics and Organizational Architecture
ISBN: 978-0073523149
6th edition
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
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