A TIPS Is Quoted at 101:17

question 39

Multiple Choice

A TIPS is quoted at 101:17. How should this quote be interpreted in relation to a $1,000 face value bond?

• A) The current yield on this security is 1.17 percent.
• B) The bond is currently selling at the discounted price of $101.17.
• C) The bond will mature at a price equal to 101.17 percent of $1,000.
• D) A $1,000 bond is currently selling for 101 and 17/32^nds percent of $1,000.
• E) A $1,000 bond will mature at a price equal to 101 and 17/32^nds percent of $1,000.

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Definitions:

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the rest of the body.

Pigment

A substance that imparts color to other materials, found in paint, ink, plants, and the human body.

Blood

A vital fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

Clotting Factors

Proteins in the blood that work together to form a blood clot, stopping bleeding and aiding in wound healing.