Question: QUESTION 4 TIPS Capital Return Consider a 4.75 percent TIPS with an issue CPI reference of 185.40. At the beginning of this year, the CPI

 QUESTION 4 TIPS Capital Return Consider a 4.75 percent TIPS with

QUESTION 4 TIPS Capital Return Consider a 4.75 percent TIPS with an issue CPI reference of 185.40. At the beginning of this year, the CPI was 192.50 and was at 203.20 at the end of the year. What was the capital gain of the TIPS in percentage terms? Assume semi-annual interest payments and $1,000 par value (Do not round the intermediate steps. Round your final answer to 2 decimal places.) 5.56 percent O 5.27 percent 7.10 percent 10.70 percent

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