Question: A TIPS bond is 1 . 5 years away from maturity. This bond has a 3 . 5 % yield, 4 . 8 % coupon

A TIPS bond is 1.5 years away from maturity. This bond has a 3.5% yield, 4.8% coupon rate, and makes semiannual payments. The CPI is currently at 200. You expect the CPI to increase to 220 after 6 months, to 231 after 12 months, and to 240.24 after 18 months. Calculate the price of this bond.

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