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yuhtyng
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Posts: 25
Joined: June 5th, 2007, 2:15 am

The face value of TIPS .

July 23rd, 2008, 6:39 am

Dear All:I wonder what the face value of TIPS.From the "Treasury Direct " website, it shows the minimum purchase is $100 and investment increment is multiples of $100.Does it mean the face value of TIPS not constant? I can buy from $100 to $1,000,000, if I like.Is that right?
 
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Martinghoul
Posts: 3255
Joined: July 18th, 2006, 5:49 am

The face value of TIPS .

July 23rd, 2008, 8:41 am

Don't forget the inflation factor.
 
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bilbo1408
Posts: 179
Joined: August 3rd, 2007, 12:50 pm

The face value of TIPS .

July 23rd, 2008, 10:52 am

QuoteDoes it mean the face value of TIPS not constant?QuoteThat's exactly what it means. The face value is adjusted each period to account for inflation. Coupon stays the same, but is paid on a higher face value.
 
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mapleleafs
Posts: 405
Joined: August 24th, 2005, 2:13 pm

The face value of TIPS .

July 23rd, 2008, 12:00 pm

so minimum face value is not $100, right?
 
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cemil
Posts: 221
Joined: September 16th, 2005, 7:44 am

The face value of TIPS .

July 23rd, 2008, 12:12 pm

the minimum value is 100 even if the inflation is negative
 
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Martinghoul
Posts: 3255
Joined: July 18th, 2006, 5:49 am

The face value of TIPS .

July 23rd, 2008, 1:26 pm

All IL bonds are floored at 0%, with the exception of Japan.
 
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caroe
Posts: 123
Joined: July 14th, 2002, 3:00 am

The face value of TIPS .

July 29th, 2008, 5:38 am

And with the exception of early swedish TIPS
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