a) For Nominal floating coupon bonds, principal is deflation unprotected and coupon is inflation protected
b) For Nominal fixed coupon bonds, coupon is deflation protected and principal is inflation protected
c) For TIPS, coupon is defalation unprotected and principal is inflation protected作者: bodhisattva 时间: 2011-7-13 17:06
I'd say c if I didn't know better作者: lcai 时间: 2011-7-13 17:06
c is also the best I can get.
Don't know much about TIPS. Is TIPS coupon always fixed?作者: Valores 时间: 2011-7-13 17:06
A - Principal IS deflation protected, so false
B - Principal is NOT inflation protected, so false
C - Correct作者: lcw77 时间: 2011-7-13 17:06
mik , in B did you mean coupon is not deflation protected ? you wrote different作者: mp3bu 时间: 2011-7-13 17:06
arent you both right?作者: pennyless 时间: 2011-7-13 17:06
yes it is where can you find it in the cfa material?作者: Chuckrox 时间: 2011-7-13 17:06
deriv108 Wrote:
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> c is also the best I can get.
>
> Don't know much about TIPS. Is TIPS coupon always
> fixed?
C is correct.
Par value of TIPS rises with inflation, as measured by CPI, while their interest rate remains fixed作者: bodhisattva 时间: 2011-7-13 17:06
pimpineasy Wrote:
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> yes it is where can you find it in the cfa
> material?
Just reread it today in CFAI Text, book 3, page 243. Page 242 is also good too.作者: ohai 时间: 2011-7-13 17:06
Thanks for these!作者: jmh530 时间: 2011-7-13 17:06
onelasttime Wrote:
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> pimpineasy Wrote:
> --------------------------------------------------
> -----
> > yes it is where can you find it in the cfa
> > material?
>
> Just reread it today in CFAI Text, book 3, page
> 243. Page 242 is also good too.
