Suppose on March 1st of 2024, Lisa buys a newly issued TIPS bond which has a face value of $1000 and coupon rate of 6.375%, and maturity of 3 years. The semiannual inflation rates in the next 6 six-month periods turn out to be 2.5%, 2%, 3%, 1.5%, 1% and 2%. The last payment Lisa will receive from this bond is $ _______

Answer rating: 100% (QA)

To calculate the last payment Lisa will receive from the TIPS bond we need to consider the coupon pa... View the full answer