an investor purchases a 5%, 5-year TIPS (Tmasury inflation Protected Securities at O $1.000 0011 O - 1970 63 O $1,061 36 po es pod

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
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If an investor purchases a 5%, 5-year TIPS (Treasury Inflation Protected Securities) at its par value of $1,000 and the CP1 increases 3% ever each of the next 5 years, what will be the real value of the principal at matury?
O $1,000
O $1.030
$970.63
$1,061.36
Transcribed Image Text:If an investor purchases a 5%, 5-year TIPS (Treasury Inflation Protected Securities) at its par value of $1,000 and the CP1 increases 3% ever each of the next 5 years, what will be the real value of the principal at matury? O $1,000 O $1.030 $970.63 $1,061.36
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