Question
You own a TIPS bond that has a 4.2% coupon, pays semiannually, and has 1 year left to maturity. The yield is 4.6%. The CPI
You own a TIPS bond that has a 4.2% coupon, pays semiannually, and has 1 year left to maturity. The yield is 4.6%. The CPI index increases from 233.5 to 244.2 in the next six months. Then it increases to 259.32 in the following six month. Calculate the price of this TIPS bond.
$1104.86
$1104.91
$1104.96
$1105.01
None of the above
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Dark Finance
Authors: Fabio Mattioli
1st Edition
1503611655, 978-1503611658
