TIPS Interest and Par Value a 3 3/4 Percent TIPS

question 16

Multiple Choice

TIPS Interest and Par Value A 3 3/4 percent TIPS has an original reference CPI of 175.8. If the current CPI is 207.7, what is the current interest payment and par value of the TIPS? (Assume semi-annual interest payments and $1,000 par value.)

• A) $1000, $18.75, respectively
• B) $1000, $37.50, respectively
• C) $1181.46, $22.15, respectively
• D) $1181.46, $37.50, respectively

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