TIPS Interest and Par Value A 3.50 percent TIPS has an original reference CPI of 170.8. If the current CPI is 206.1, what is the current interest payment and par value of the TIPS? Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.)

A. $21.12, $1206.67, respectively
B. $6.67, $1206.67, respectively
C. $6.67, $1000, respectively
D. $21.12, $1000, respectively


Answer: A

Business

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