CFA备考-典型例题典型例题_FI-2017.pdfVIP

Fixed Income 1. On January 1st of the year, an investor purchases $100,000 in par value of a new Treasury Inflation Protection Security (TIPS) issue that has a 2.5% coupon rate. The annual rate of inflation over the first six months of the year is 4.0% and the annual rate of inflation for the second six months of the year is 3.0%. The amount of coupon interest paid to the investor after the second six months of the year is closest to: A. $1,275. B. $1,294. C. $1,339. Answer: B B is correct because the inflation-adjusted principal after