Consider a 3.50% TIPS with an issue CPI reference of 242.60. At the beginning of this year, the CPI was 256.80 and was at 268.40 at the end of the year. What was the capital gain of the TIPS in percentage terms? A. 4.52% B. 6.30% C. 4.75% D. 10.64%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
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Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Consider a 3.50% TIPS with an issue CPI reference of 242.60. At the beginning of
this year, the CPI was 256.80 and was at 268.40 at the end of the year. What was
the capital gain of the TIPS in percentage terms?
A. 4.52%
B. 6.30%
C. 4.75%
D. 10.64%
Transcribed Image Text:Consider a 3.50% TIPS with an issue CPI reference of 242.60. At the beginning of this year, the CPI was 256.80 and was at 268.40 at the end of the year. What was the capital gain of the TIPS in percentage terms? A. 4.52% B. 6.30% C. 4.75% D. 10.64%
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