TIPs mathematics

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Topic Author
Erwin
Posts: 1929
Joined: Fri Apr 27, 2007 11:16 pm

TIPs mathematics

Post by Erwin »

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
User avatar
cato
Posts: 230
Joined: Thu Dec 20, 2007 7:39 pm
Location: Portola Valley, CA

Post by cato »

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? ;-)
Citigroup delenda est.
Topic Author
Erwin
Posts: 1929
Joined: Fri Apr 27, 2007 11:16 pm

Post by Erwin »

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