A 25 Percent TIPS Has an Original Reference CPI of 170

question 95

Multiple Choice

A 2.5 percent TIPS has an original reference CPI of 170.4. If the current CPI is 205.7, what is the current interest payment and par value of the TIPS? (Assume semiannual interest payments and $1,000 par value.)

• A) $7.16, $1,000, respectively
• B) $15.09, $1,000, respectively
• C) $7.16, $1,207.16, respectively
• D) $15.09, $1,207.16, respectively

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Definitions:

Major Depressive

A mental disorder characterized by at least two weeks of pervasive sadness or loss of interest in activities, accompanied by additional psychological symptoms.

Persistent Depressive

A chronic form of depression marked by a long-term, continuous presence of sad or empty mood, also known as dysthymia.

Splitting

A cognitive distortion where one views people or situations as entirely good or entirely bad, with no middle ground.

Schizophrenia

A chronic mental health disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behaviour.