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If the US dollar loses 10% of its value to inflation, how much will the Treasury inflation-protected securities return?

Abbreviated Question: 
If the US dollar loses 10% of its value to inflation, how much will the Treasury inflation-protected securities return?
Answer: 

Suppose that $5000 is the face value or redemption value (not the market price at which an investor may have bought it) of a 5-year TIPs. Suppose that it promises to pay an annual coupon payment of 1% or the amount of $50 at the time of purchase. Now assume that the inflation rate is 10% in the course of the year in question. The Treasury adjusts upwards the face or redemption value of $5000 by 10%, to $5500. Then it pays an annual coupon amount of 1% of $5500 or $55. Thus annual coupon payments are calculated on the inflation adjusted face value.