How would you work this out in excel? a Understanding TIPS and inflation If an investor purchases
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How would you work this out in excel?
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a Understanding TIPS and inflation If an investor purchases a over the first year and Face value== Stated coupon rate= 4.7% 3.1% 1,000 4.7% two-year TIPS and the CPI increases 2.0% over the second year, how much does the investor receive at maturity? Year 1 2 CPI Inflation Nominal Cash Flow Real Cash Flow a Understanding TIPS and inflation If an investor purchases a over the first year and Face value== Stated coupon rate= 4.7% 3.1% 1,000 4.7% two-year TIPS and the CPI increases 2.0% over the second year, how much does the investor receive at maturity? Year 1 2 CPI Inflation Nominal Cash Flow Real Cash Flow
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a Note that in TIPS the principal amount increases by the inflation so as the investors returns are ... View the full answer
Related Book For
Cases and Exercises in Organization Development & Change
ISBN: 978-1412987738
1st edition
Authors: Donald L. Anderson
Posted Date:
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