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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Management Of Islamic Finance
Authors: M. Kabir Hassan, Mamunur Rashid
1st Edition
1787564045, 978-1787564046
