The cpi is currently 2752 it will increase to 288 in 6


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.

Please show me step by step calculation

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The cpi is currently 2752 it will increase to 288 in 6
Reference No:- TGS02709668

Expected delivery within 24 Hours