1. Find the interest payment you would have received (in dollars and cents) on July 15, 2021 if you owned a 10-year TIPS bond which was issued on Jan. 15, 2020 with a face value of $100,000 and a...

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Answered Same DayMay 03, 2022

Answer To: 1. Find the interest payment you would have received (in dollars and cents) on July 15, 2021 if you...

Rochak answered on May 03 2022
109 Votes
1. Interest Payment Received on July 15, 2021, = Face value * (Coupon Rate + Inflation rate as on June 2021)
= $100,000 * (2.40%+6.7%)
= $9,100
2. Settlement Date = October 19, 2021
Maturity Date = December 15 2025
Coupon Rate = 2.75%
Current Price = 102.09
Face Value = 100
Coupon = Face Value * Coupon Rate
= $100 * 2.75%
= $2.75
Number of years till maturity = 4.17 years
Yield to Maturity = (Coupon + ((Face Value – Current Price)/Number of years till maturity))/((Face value + Current...
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