TIPS Interest and Par Value a 2

TIPS Interest and Par Value A 2.5 percent TIPS has an original reference CPI of 170.4.If the current CPI is 205.7,what is the current interest payment and par value of the TIPS? (Assume semi-annual interest payments and $1,000 par value.)

A) $1,000, $7.16, respectively
B) $1,000, $15.09, respectively
C) $1,207.16, $7.16, respectively
D) $1,207.16, $15.09, respectively

Correct Answer:

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