Question: Consider a 3 . 3 0 percent TIPS with an issue CPI reference of 1 8 5 . 4 . At the beginning of this
Consider a percent TIPS with an issue CPI reference of At the beginning of this year, the CPI was and was at at the end of the year.
What was the capital gain of the TIPS in dollars?
What was the capital gain of the TIPS in percentage?A percent coupon bond with years left to maturity is priced to offer a percent yield to maturity. You believe that in one year, the yield to maturity will be percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars?
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