Question
Consider a 2.85 percent TIPS with an issue CPI reference of 200.4. The bond is purchased at the beginning of the year (after the interest
Consider a 2.85 percent TIPS with an issue CPI reference of 200.4. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was an 210.3. For the interest payment in the middle of the year, the CPI was 213.3. Now, at the end of the year, the CPI is 217.0 and the interest payment has been made. What is the total return of the TIPS in dollars? What is the total return of the TIPS in percentage?
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
