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TIPS Capital Return Consider a 3

Question 102

Multiple Choice

TIPS Capital Return Consider a 3.25% 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

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