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How would you work this out in excel? a Understanding TIPS and inflation If an investor purchases a over the first year and Face value=
How would you work this out in excel? a Understanding TIPS and inflation If an investor purchases a over the first year and Face value= Stated coupon rate= 4.7% two-year TIPS and the CPI increases 2.0% 3.1% over the second year, how much does the investor receive at maturity? 1,000 CPI Nominal Real 4.7% Year Inflation Cash Flow Cash Flow 1 2 b Understanding the market price of bonds How muchs should you pay for a bond with a 2.7% coupon with annual coupon payments if the term to maturity is 4 years and the current market rate of interest is 3.2% for a comparably risky asset? $1,000 2.7% Par value= Coupon rate= Coupons Market rate of interest Term to maturity 3.2% Current market price- a Understanding TIPS and inflation If an investor purchases a over the first year and Face value= Stated coupon rate= 4.7% two-year TIPS and the CPI increases 2.0% 3.1% over the second year, how much does the investor receive at maturity? 1,000 CPI Nominal Real 4.7% Year Inflation Cash Flow Cash Flow 1 2 b Understanding the market price of bonds How muchs should you pay for a bond with a 2.7% coupon with annual coupon payments if the term to maturity is 4 years and the current market rate of interest is 3.2% for a comparably risky asset? Par value= $1,000 Coupon rate 2.7% Coupons Market rate of interest 3.2% Term to maturity 4 Current market price
How would you work this out in excel?
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