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As stated by the US Treasury:

With a rise in the index, or inflation, the principal increases. With a fall in the index, or deflation, the principal decreases.

I'm curious why a TIPS (912828QV5) bond maturing on 07/15/2021 (in 2 months) is priced at $101.22, when the index ratio is 1.18456. Isn't this bond going to be paying out $118.56 at maturity? What am I missing?

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TIPS are quoted as a percentage of the real (inflation-adjusted) principal, which is probably slightly less than 118.56 with 2 months to go. So you're paying 101.22% of that amount (plus any accrued interest) and will get ~118.56 + 0.625% * 118.56 at maturity.

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