Problem 7-33 TIPS Total Return (LG7-2) Consider a 4.50 percent TIPS with an issue CPI reference of 197.6. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 205.5. For the interest payment in the middle of the year, the CPI was 2071. Now, at the end of the year, the CPI is 211.6 and the interest payment has been made. What is the total return of the TIPS in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return What is the total return of the TIPS in percentage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return %

Problem 7-33 TIPS Total Return (LG7-2) Consider a 4.50 percent TIPS with an issue CPI reference of 197.6. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 205.5. For the interest payment in the middle of the year, the CPI was 2071. Now, at the end of the year, the CPI is 211.6 and the interest payment has been made. What is the total return of the TIPS in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return What is the total return of the TIPS in percentage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 13PROB

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