Question
Consider a 3.10 percent TIPS with an issue CPI reference of 205.9. The bond is purchased at the beginning of the year (after the interest
Consider a 3.10 percent TIPS with an issue CPI reference of 205.9. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 215.8. For the interest payment in the middle of the year, the CPI was 218.8. Now, at the end of the year, the CPI is 222.5 and the interest payment has been made.
What is the total return of the TIPS in dollars?(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Total Return
What is the total return of the TIPS in percentage?
Total return
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
