Question: How would you work this out in excel? a Understanding TIPS and inflation If an investor purchases a over the first year and Face value==
How would you work this out in excel?


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 full answer
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