Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 7-33 TIPS Total Return (LG7-2) Consider a 4.30 percent TIPS with an issue CPI reference of 195.2. The bond is purchased at the beginning

image text in transcribed

Problem 7-33 TIPS Total Return (LG7-2) Consider a 4.30 percent TIPS with an issue CPI reference of 195.2. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 203.1. For the interest payment in the middle of the year, the CPI was 204.7. Now, at the end of the year, the CPl is 209.2 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) Answer is complete and correct. Total return $ 76.84 What is the total return of the TIPS in percentage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. 5.120% | Total return

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ACT Guide To Ethical Conflicts In Finance

Authors: Andreas Prindl, Bimal Prodhan

1st Edition

1855732564, 978-1855732568

More Books

Students also viewed these Finance questions