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
Correct Answer:

Verified
Correct Answer:
Verified
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