It took some time to achieve the product I was looking for, but we eventually got there. I do feel like a lot of hard work was put into this, and it even exceeded the page requirement. I'm pretty pleased overall. I give my thanks.
A 2-year TIPS that pays 1% annual coupons has $100 face value and -0.5% yield to maturity
(a). What is the price of the TIPS today?
(b). Suppose the CPI goes up by 2% for the next year, what are the new face value, coupon payment, and price of the bond one year from now just after the first coupon is paid? Assume, that the coupon reflects the adjusted face value you compute in each scenario, and that the yield to maturity remains constant at -0.5%.
(c). Based on (b), what are the nominal and real holding period returns for the bond in the next year?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more