Question: Suppose a 2.35 percent TIPS bond has a par value of $1,000. If the original reference CPI is 164.7 and the current CPI is 193.4,
Suppose a 2.35 percent TIPS bond has a par value of $1,000. If the original reference CPI is 164.7 and the current CPI is 193.4, what is the current interest payment of the TIPS? Assume semi-annual interest payments and $1,000 par value. (Express the monetary value to the nearest whole dollar.) A. less than $12.76 B. more than $12.76 but less than $13.18 C. more than $13.18 but less than $13.60 D. more than $13.60 but less than $14.02 E. more than $14.02
Consider a 3.65 percent TIPS with an issue CPI reference of 174.6. At the beginning of this year, the CPI was 192.4 and was at 197.8 at the end of the year. What was the capital gain of the TIPS in percentage terms for the year?
A. less than 2.85 percent B. more than 2.85 percent but less than 3.10 percent C. more than 3.10 percent but less than 3.35 percent D. more than 3.35 percent but less than 3.60 percent E. more than 3.60 percent\
A 6.75 percent coupon bond with 12 years left to maturity can be called in 4 years. The call premium is one year of coupon payments. It is offered for sale at $1,062.75. Assume that interest payments are paid semi-annually and par value is $1,000. What is the yield to call of the bond? (Express the percentage to the nearest hundredth)
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