Consider a 4

question 64

Multiple Choice

Consider a 4.5% TIPS with an issue CPI reference of 187.2. At the beginning of this year, the CPI was 199.5 and was 213.7 at the end of the year. What was the capital gain of the TIPS in dollars?

• A) $32.73
• B) $46.92
• C) $62.49
• D) $75.85

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Definitions:

Reasonable Time

A period which is fair and appropriate under the circumstances, considering the specific context of the situation.

Government Agency

An organization part of the government, established to perform specific functions or services.

Condition Precedent

A condition precedent is a condition or event that must occur before a party is required to perform a contractual obligation or before a contract becomes effective.

Contractual Obligation

A legal duty borne out of a contract, requiring a party to act or refrain from acting in a certain way.