A 5 1/8% TIPS has an original reference CPI of 191.8. If the current CPI is 188.3, what is the par value of the TIPS?
A) $981.75
B) $1,018.60
C) $992.75
D) $1,042.95

Name: A 5 1/8% TIPS has an original reference CPI of 191.8. If the current CPI is 188.3, what is the par value of the TIPS? A) $981.75 B) $1,018.60 C) $992.75 D) $1,042.95
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Question

Quizplus · Accepted Answer

The par value of TIPS is adjusted based on the ratio of the current CPI to the original reference CPI. The calculation is: (188.3 / 191.8) * $1,000 = $981.75.

A 5 1/8% TIPS Has an Original Reference CPI of 191.8