TIPS Capital Return Consider a 3

question 25

Multiple Choice

TIPS Capital Return Consider a 3.75% TIPS with an issue CPI reference of 183.5. At the beginning of this year, the CPI was 190.6 and was at 199.4 at the end of the year. What was the capital gain of the TIPS in percentage terms? (Assume semi-annual interest payments and $1,000 par value.)

• A) 3.75%
• B) 4.62%
• C) 7.10%
• D) 8.80%

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Definitions:

Cerebral Hemispheres

The two halves of the brain, the right and left hemispheres, which are responsible for various functions and cognitive processes.

Melatonin

A substance created by the pineal gland responsible for controlling sleep and wakefulness cycles.

Islets of Langerhans

Clusters of pancreatic cells that produce hormones, including insulin, critical for regulating blood sugar levels.

Glucagon

Glucagon is a hormone produced by the pancreas that increases blood glucose levels by stimulating the liver to convert stored glycogen into glucose.