1. Note: For this question the inflation rates are actual inflation levels ( so a 6 month inflation rate increase of 3% increases par by 3%, not 1.5%.)

You have a semiannual treasury inflation protected security, which is 1000 par and sells at par, with a 4% coupon rate. If the inflation rates are: 1% for the first 6 months and then 1.9% for the second, 0% for the third and 1% for the fourth 6 months, find:

-the individual nominal payments made for each time period

2. Price a 5 year 4% semiannual coupon bond if the yield to maturity is 6% (write the price as if par is 100, use 5 decimal places)