Tweaking the formula:
If I have a ladder of TIPS, the cash received in each year would be equal to:
1) The principle maturing that year = number of bonds * inflation factor * 1,000
2) The interest paid that year: for each bond in the ladder with a maturity year greater than or equal to the year in question = number of bonds * inflation factor * 1,000 * coupon. If the maturity month is less than or equal to May, interest would be half of the annual interest.
The inflation factor for each TIPS is equal to today's refcpi divided by the refcpi for the dated date of the TIPS, rounded to five digits. #Cruncher lists today's refcpi and the refcpi for each TIPS at https://eyebonds.info/tips/
Is this correct and complete?
If I have a ladder of TIPS, the cash received in each year would be equal to:
1) The principle maturing that year = number of bonds * inflation factor * 1,000
2) The interest paid that year: for each bond in the ladder with a maturity year greater than or equal to the year in question = number of bonds * inflation factor * 1,000 * coupon. If the maturity month is less than or equal to May, interest would be half of the annual interest.
The inflation factor for each TIPS is equal to today's refcpi divided by the refcpi for the dated date of the TIPS, rounded to five digits. #Cruncher lists today's refcpi and the refcpi for each TIPS at https://eyebonds.info/tips/
Is this correct and complete?
Statistics: Posted by exodusing — Thu Jan 25, 2024 8:18 am — Replies 6 — Views 673