Consider a 3

question 52

Multiple Choice

Consider a 3.75 percent 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 semiannual interest payments and $1,000 par value.)

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

---

Definitions:

European Immigration

The movement of people from Europe to other countries for reasons such as economic opportunity, escape from persecution, or family reunification, significantly shaping the demographics of the receiving countries.

Residential Instability

Residential instability denotes frequent changes in living situations or housing, which can reflect and contribute to social and economic instability.

Job Loss

The condition of being removed or dismissed from employment, leading to unemployment and potential economic and psychological consequences.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.