What was the capital gain of the tips in dollars

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1. TIPS Capital Return Consider a 5.50% TIPS with an issue CPI reference of 187.60. At the beginning of this year, the CPI was 198.40 and was at 204.20 at the end of the year. What was the capital gain of the TIPS in dollars? (Round your answer to 2 decimal places.)

$10.80

$16.60

$5.80

$30.92

2. Call Premium A 4.75 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

$190.00

$47.50

$1,047.50

$1,000.00

Reference no: EM132072690

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