Zoho Sheet - Buying TIPS on Secondary Market

Buying TIPS on Secondary Market

This spreadsheet calculates the all-in cost for buying TIPS on the secondary market. For more information, see

Cells in blue are data inputs. Other cells are calculated.

From Broker Quote

Settlement Date

12/24/2008

Next business day after Purchase Date

Maturity Date

1/15/2016

Coupon Rate

2.000%

Index Ratio

1.09333

Ask Price

96.965000

Number of bonds you will buy

Broker commission on top of markup

$40.00

Calculated Fields

Days until next interest payment

Next interest payment date

01/15/2009

Last interest payment date

07/15/2008

Accrued Interest

0.885246

percent of adjusted principal

Adjusted Price

$1,060.15

per bond

Adjusted Accrued Interest

$9.68

per bond

Adjusted price plus accrued interest

$1,069.83

per bond

Total cost with broker commission

$10,738.26

Total cost per bond

$1,073.83

Real YTM with broker commission

2.413%

Sheet1