FINANCE EXCEL ASAPMuneeb
Suppose you have got $100,000 to save and you are considering buying a ten-year TIPS with the following conditions: A one-year TIPs has a real interest rate of 4%. The consumer price index today is 120. The anticipated inflation rate is 4% p.a. Calculate the nominal payment on the TIPs you can expect in ten years. Calculate the TIPs anticipated nominal return.
- 5 years ago