1. A semiannual TIPS was issued in December 2017 with a face value of $1,000 and a coupon rate of 1.2%. What coupon payment it must have paid in December 2018 if the CPI was 247.91 in December 2017 and 251.23 in June 2018?

A. 6.08 B. 6.55 C. $6.97 D. $12.16

2. Consider a plain vanilla interest-rate swap with an effective date of January 1 of year 1, notional amount of $100 million, and quarterly payments. The reference rate is 3-month LIBOR. On January 1, the 3-month LIBOR is 3%, and Eurodollar futures maturing on June 30 and September 30 of year 1 are quoted as 96.5 and 96.2. The swap rate is 3.7%. The fixed-rate payment in the second quarter is

A. 912,329 B. 925,000 C. 935,378 D. 945,556