I have a 20 year TIPS that I bought at a discount. It’s a 0.65% coupon with a 2.42% YTM bought at $73.02. Does the inflation adjustment happen on the par price? For example, if there is 3% inflation is the factor 1.03 x 100 and since I bought at a discount it would be 1.03/.7302?
In an efficient market that doesn’t seem possible, so it would be appreciated if someone could point out what I’m missing.
In an efficient market that doesn’t seem possible, so it would be appreciated if someone could point out what I’m missing.
Statistics: Posted by Rule_of_72t — Thu Jul 04, 2024 7:14 pm — Replies 5 — Views 438