Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%.
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose you buy a TIPS bond with 1 year until maturity and an annual coupon of 5.8%. If you buy the bond at face value and the inflation rate is 4.7%, then what will be your nominal return during the year?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date: