A 375 Percent TIPS Has an Original Reference CPI of 183

question 102

Multiple Choice

A 3.75 percent TIPS has an original reference CPI of 183.9. If the current CPI is 214.7, what is the current interest payment? (Assume semiannual interest payments and a par value of $1,000.)

• A) $43.78
• B) $37.50
• C) $21.89
• D) $18.75

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Definitions:

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