UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: KenAtPcs Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Re: Inflation Numbers Date: 1/19/2006 11:58 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Your next coupon payment will be 1/2 the coupon (six months) multiplied by the current value of the TIPS, which in theory can be less than face value, if there has been deflation between issue and the coupon payment date. If, at the maturity date, there has been deflation since issue, the TIPS will be bumped up to its original face value.

Sounds perfect to me -- I hope that statement can make it into the FAQ somewhere.

I'm still betting the IRS has no way of letting you subtract deflation from ongoing taxes on the inflation component.

Exactly where did you place this bet? I'd like to be in on that action, too. ;)

I would like to figure out what the date for the "reference CPI-U" is for newly auctioned TIPS.

Wouldn't it just start with whatever the CPI-U was for the issue date? For example, here's the page you were referring to for the new 10-years just issued:
http://www.publicdebt.treas.gov/of/of10m022006.htm

It shows the "Dated Date" (how snappy is that?) as Jan 15, '06, and the "Ref CPI on Dated Date" as 198.47742. Wouldn't that correspond to the Nov 15, '05 CPI-U value?

Ken
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement