Another way of stating this is the 2040 will return about $1450 in 2025 dollars at maturity compared with $1030 in 2025 dollars for the 2034.The 2040 has already accumulated inflation adjustments of around 45%, while the 2034 has only accumulated around 3%. After correcting for that, the prices are similar.Sorry I should have clarified that earlier. Assume, no inflation risk for those 3 years and no loss when selling 2040 earlier. I am trying to understand why cost of 2040 is 40% or so higher than the 2034 TIP. What do I get for paying that extra cost upfront in 2025?
I believe the market price quoted is before the index ratio adjustment.
Statistics: Posted by Lyrrad — Fri Jan 10, 2025 1:16 pm