Question: Consider a 3 . 5 percent TIPS with an issue CPI reference of 1 8 5 . 6 . The bond is purchased at the

Consider a 3.5 percent TIPS with an issue CPI reference of 185.6. The bond is purchased at the beginning of the year(after the interest payment), when the CPI was 193.5. For the interest payment in the middle of the year, the CPI was 195.1. Now, at end of the year, the CPO is 199.6 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?

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