contestada

A TIPS was issued with a face value of $5,000, a coupon rate of 3 percent, and a reference CPI of 201.42. The current CPI is 203.14. What is the current interest payment?

Respuesta :

Answer:

$75.64

Explanation:

Data provided in the question

Face value = $5,000

Coupon rate = 3%  

Reference CPI = 201.42

Current CPI = 203.14

By considering the above information, the current interest payments is

= Face value × (Current CPI ÷ Reference CPI) × coupon rate

where,

Coupon rate = 3% ÷ 2 = 1.5%

So, the interest payment is

= $5,000 × (203.14 ÷ 201.42) × 1.5%

= $75.64

Otras preguntas