Question
Suppose that the coupon rate for a TIPS is 4.7%. Suppose further that an investor purchases $200,000 of par value (initial principal) of this issue
Suppose that the coupon rate for a TIPS is 4.7%. Suppose further that an investor purchases $200,000 of par value (initial principal) of this issue today and that the annualized inflation rate is 4%. If the annualized inflation rate over the following 6 months is -1.3%.
What is the coupon payment (in $) at the end of the year?
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
