Consider the following TIPS bond purchased one year ago. The bond had an original principal value of
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider the following TIPS bond purchased one year ago. The bond had an original principal value of $1,000 and pays a 10% annual coupon payment that is paid semiannual. Inflation for the first 6 months was 2.4% while inflation for the second 6 months was 1.2%. What is the current principal amount and what is the amount of the second coupon payment?
Related Book For
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
Posted Date: