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:

Employment-At-Will Policy

A doctrine in U.S. labor law that states an employer can terminate an employee at any time for any reason, except an illegal one, and without warning, as long as the reason is not illegal.

Promote-From-Within Policy

A company policy that prioritizes the advancement of current employees to higher positions over hiring outsiders.

Lead-The-Market Strategy

A competitive approach where a company aims to position itself as the top choice in its industry by offering better terms, conditions, or benefits to its employees.

Internal Source

An internal source refers to information, resources, or candidates originating from within an organization, as opposed to those found externally.