What is the total return of the tips in percentage terms


Reconsider a 3.75% TIPS that was issued with CPI reference of 187.2. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 198.3. For the interest in the middle of the year, the CPI was 199.2. Now, at the end of the year, the CPI is 203.5 and the interest payment has been made. What is the total return of the TIPS in percentage terms for the year? (Do not round the intermediate steps. Round your final answer to 2 decimal places.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the total return of the tips in percentage terms
Reference No:- TGS02315283

Expected delivery within 24 Hours