Consider a 4.00 percent TIPS with an issue CPI reference of 191.6. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 199.5. For the interest payment in the middle of the year, the CPI was 2011. Now, at the end of the year, the CPI is 205.6 and the interest payment has been made. What is the total return of the TIPS in dollars? What is the total return of the TIPS in percentage? Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Total return in dollars Total return in percentage %
Consider a 4.00 percent TIPS with an issue CPI reference of 191.6. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 199.5. For the interest payment in the middle of the year, the CPI was 2011. Now, at the end of the year, the CPI is 205.6 and the interest payment has been made. What is the total return of the TIPS in dollars? What is the total return of the TIPS in percentage? Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Total return in dollars Total return in percentage %
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
Problem 1PS
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Transcribed Image Text:Consider a 4.00 percent TIPS with an issue CPI reference of 191.6. The bond is purchased at the beginning of the year (after the
interest payment), when the CPI was 199.5. For the interest payment in the middle of the year, the CPI was 2011. Now, at the end of the
year, the CPI is 205.6 and the interest payment has been made.
What is the total return of the TIPS in dollars?
What is the total return of the TIPS in percentage?
Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.
Total return in dollars
Total return in percentage
%
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