A 4.000 percent TIPS has an original reference CPI of 181.2. If the current CPI is 207.5, what is the par value and current interest payment of the TIPS? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Par value $ 1,144.97 x Interest payment $ 45.80 x

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A 4.000 percent TIPS has an original reference CPI of 181.2. If the current CPI is 207.5, what is the par value and current interest
payment of the TIPS? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Par value
$
1,144.97 x
Interest payment
$
45.80 x
Transcribed Image Text:A 4.000 percent TIPS has an original reference CPI of 181.2. If the current CPI is 207.5, what is the par value and current interest payment of the TIPS? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Par value $ 1,144.97 x Interest payment $ 45.80 x
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