Question: Problem 4 Consider a TIPS issued on 15 April 2006, with coupon of 3.625% and a maturity date of 15 April 2016. The Reference CPI

Problem 4 Consider a TIPS issued on 15 April 2006, with coupon of 3.625% and a maturity date of 15 April 2016. The Reference CPI Index level for the bond is 150.30. Assume that the Bureau of Labor Statistics (BLS) reports CPI numbers for January, February, March, and April 2016 of 167, 172, 170, 174.

a) What is the final principal repayment per $100 face value

b) what is the final coupon payment on the TIPS?

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