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If an investor purchases a 3%, 5-year TIPS at its par value of $1,000 and the CPI increase 3% over each of the next 5 years, what will be the real value of the principal at maturity
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If an investor purchases a 3%, 5-year TIPS at its par value of $1,000 and the CPI increase 3% over each of the next 5 years, what will be the real value of the principal at maturity

User Romario
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6 votes

Answer: $1,000.00

Explanation: the real value of capital remains constant for each value

User Airborn
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