Question
TIPS Capital Return Consider a 3.50 percent TIPS with an issue CPI reference of 184.50. At the beginning of this year, the CPI was 196.00
TIPS Capital ReturnConsider a 3.50 percent TIPS with an issue CPI reference of 184.50. At the beginning of this year, the CPI was 196.00 and was at 201.10 at the end of the year. What was the capital gain of the TIPS in dollars? Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.)
please explain how you got your answer
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
