TIPs mathematics

Erwin · Post by **Erwin** » Wed Nov 19, 2008 11:17 pm

Please help me with the TIPs calculations. I bought the following individual TIP bond yesterday:
4/15/2028 US TIP 3.625%, Shares=130,000 Price=111.2883, Interest=630.77. Total payment=$196,429.36.
Questions:
what are the by annual payments as a function of inflation?
what is the final payment at redemption in 2028 as a function of inflation?

Thank you, Erwin

cato · Post by **cato** » Thu Nov 20, 2008 12:05 am

Holy smokes. You just dropped 200 grand and didn't bother to calculate this beforehand? I've got some great CDOs to sell. You interested?

Erwin · Post by **Erwin** » Thu Nov 20, 2008 12:24 am

Cato,
You right by my wrting, but I have done the calculations, just validating. Erwin