Answers must be entered as formulas. 1. Calculate the par value and current inte

Question

Answers must be entered as formulas.

1. Calculate the par value and current interest payment. TIPS Interest and Par Value - Excel ?- × HOME INSERT PAGE LAYOUTFORMULAS DATA REVIEW VIEW Sign In Arial Paste AAlignment Number Conditional Format as Cell Cells Editing Formatting TableStyles' ClipboardE D15 A 3.125 percent TIPS has an original reference CPI of 185.1. If the current CPI is 210.4, what is the par value and current interest payment of the TIPS? (Do not round intermediate calculations and round vour final answers to 2 decimal places Interest rate Reference CPI Current CPI 3.125% 185.1 210.4 10 12 13 Complete the following analysis. Do not hard code values in your calculations 15 16 17 18 19 Par value Interest payment Sheet.. + 10096 Attempt(s) 3/3

Explanation / Answer

Par value = (current CPI /Original CPI) *1000

= (210.4/185.1)*1000=1136.68

Interest Payment =1/2*Coupon Rate *Par value

= 1/2*3.125%*1136.68=17.760625

=17.76%

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