TIPS Interest and Par Value a 2½ Percent TIPS Has

question 41

Multiple Choice

TIPS Interest and Par Value A 2½ 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 semi-annual interest payments and $1,000 par value.)

• A) $1000, $7.16, respectively
• B) $1000, $15.09, respectively
• C) $1207.16, $7.16, respectively
• D) $1207.16, $15.09, respectively

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Definitions:

Superior Articular Facet

The top part of a vertebra that interacts with the vertebra above it to form a joint, aiding in the flexibility and movement of the spine.

Median Sacral Crest

A bony ridge located on the posterior surface of the sacrum, formed by the fusion of spinous processes of sacral vertebrae.

Posterior Sacral Foramina

Openings located on the posterior side of the sacrum bone, through which nerves and blood vessels pass.

Coccyx

The small, triangular bone at the base of the spinal column in humans, composed of three to five fused vertebrae.