Consider a 3.50% TIPS with an initial CPI reference of 210.50. At the beginning of the year, the CPI was 218.75 and reached 229.40 at the end of the year. Calculate the capital gain of the TIPS in percentage terms. (Do not round intermediate steps. Round the final answer to 2 decimal places.)
Consider a 3.50% TIPS with an initial CPI reference of 210.50. At the beginning of the year, the CPI was 218.75 and reached 229.40 at the end of the year. Calculate the capital gain of the TIPS in percentage terms. (Do not round intermediate steps. Round the final answer to 2 decimal places.)
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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Transcribed Image Text:Consider a 3.50% TIPS with an initial CPI reference
of 210.50. At the beginning of the year, the CPI was
218.75 and reached 229.40 at the end of the year.
Calculate the capital gain of the TIPS in percentage
terms.
(Do not round intermediate steps. Round the final
answer to 2 decimal places.)
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