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:

Clarity And Confidence

The quality of being easily understood and sure of oneself, often resulting in effective and convincing communication.

Transitional Words

Words or phrases used to connect ideas, sentences, or paragraphs, ensuring smooth flow in writing.

Complete Sentences

Sentences that contain at least a subject and a predicate, expressing a complete thought or idea.

Summary

a brief statement or account of the main points of something, condensing its essential information.