Suppose you buy a tips bond with a 5 coupon rate 18 months


Suppose you buy a TIPS bond with a 5% coupon rate, 18 months to maturity, pays semiannually, and a YTM of 3.3%. The CPI is currently 275.2. It will increase to 288 in 6 months, to 291 in 12 months, and to 294 in 18 months. Calculate the price of this bond.

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Financial Management: Suppose you buy a tips bond with a 5 coupon rate 18 months
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