Question
Consider a 2.55 percent TIPS with an issue CPI reference of 193.8. The bond is purchased at the beginning of the year (after the interest
Consider a 2.55 percent TIPS with an issue CPI reference of 193.8. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 203.7. For the interest payment in the middle of the year, the CPI was 206.7. Now, at the end of the year, the CPI is 210.4 and the interest payment has been made.
What is the total return of the TIPS in dollars & percentage? answer in 2 decimal places
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Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
8th Edition
73526916, 978-0073526911
