TIPS Capital Return Consider a 3

question 118

Multiple Choice

TIPS Capital Return Consider a 3.25 percent TIPS with an issue CPI reference of 186.7.At the beginning of this year,the CPI was 197.5 and was at 202.4 at the end of the year.What was the capital gain of the TIPS in dollars? (Assume semi-annual interest payments and $1,000 par value.)

• A)$4.90
• B)$10.80
• C)$15.70
• D)$26.25

---

Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, named after sponsors Senator Paul Sarbanes and Representative Michael Oxley.

Securities Fraud

Illegal practices involving the deception of investors or manipulation of financial markets, often leading to financial loss for investors.

Organizational Control

The processes, structures, and guidelines put in place within an organization to guide the behavior of its members and achieve its objectives.