To make things simple:
1) you purchased $50,000 par of this TIPS.
2) your accrued principal on June 28 will be $50,000 x 1.01332 = $50,666
3) the cost of investment on June 28 will be: $50,666 x 1.00338480 = $50,837.49
4) the accrued interest will be returned at the first coupon payment.
As of Sept 28, you will have $50,666 in principal, which will grow or fall with inflation accruals and earn the 2.125% coupon on current principal for 4 years, 10 months. At maturity you will get $50,000 x closing inflation index + one final coupon payment.
You par value remains at $50,000 and only that par value is guaranteed to be returned at maturity. I don't think this should be a major concern.
1) you purchased $50,000 par of this TIPS.
2) your accrued principal on June 28 will be $50,000 x 1.01332 = $50,666
3) the cost of investment on June 28 will be: $50,666 x 1.00338480 = $50,837.49
4) the accrued interest will be returned at the first coupon payment.
As of Sept 28, you will have $50,666 in principal, which will grow or fall with inflation accruals and earn the 2.125% coupon on current principal for 4 years, 10 months. At maturity you will get $50,000 x closing inflation index + one final coupon payment.
You par value remains at $50,000 and only that par value is guaranteed to be returned at maturity. I don't think this should be a major concern.
Statistics: Posted by tipswatcher — Fri Jun 21, 2024 6:58 am — Replies 4 — Views 403