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Consider an investor who, on January 1, 2019, purchases a TIPS bond with an original principal of $103.000, an 8 percent annual for percent semiannual)

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Consider an investor who, on January 1, 2019, purchases a TIPS bond with an original principal of $103.000, an 8 percent annual for percent semiannual) coupon rate, and 12 years to maturity o. If the semiannual Inflation rate during the first six months is 0.2 percent calculate the principal amount used to determine the first coupon payment and the first coupon payment (paid on June 30, 2019) b. From your answer to parte, calculate the inflation-adjusted principal at the beginning of the second six months c. Suppose that the semiannual inflation rate for the second six month period is 13 percent Calculate the inflation-adjusted principal at the end of the second six months on December 31, 2019) and the coupon payment to the investor for the second six-month period a. Coupon payment b. Inflation-adjusted principal c. Inflation-adjusted principal at the end of the second six months Coupon payment

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