No. of Recommendations: 2
I got the same coupon rate of course, the price was 99.9805 but the cost amount 25,037.97 was a little more than the quantity purchased 25,000.

How did you calculate your price?


DreadPotato,

Just got off the phone with a Fidelity fixed income specialist. The TIPS traded with an inflation adjustment of .87 per 1000, and an accrued interest of .84 per 1000.

Here is the way it should calculate for your 25,000.

25000 X 99.9805= 24,995.12

.87 X 25 = 21.75 (inflation adjustment)
.84 X 25 = 21.00 (accrued interest)

24,995.12 + 21.75 + 21.00 = 25,037.87

The $.10 difference is rounding error.

Hope this helps,

OxBeaux
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