Question: A 4 . 1 5 percent TIPS has an original reference CPI of 1 8 2 . 1 . If the current CPI is 1

A 4.15 percent TIPS has an original reference CPI of 182.1. If the current CPI is 188.3, how will the par value of the TIPS change?
Multiple Choice
The par value of the TIPS will increase.
The par value of the TIPS will decrease.
The par value of the TIPS will become meaningless.
The par value of the TIPS will stay the same.
A 4.15 percent TIPS has an original reference CPI of 182.1.

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