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Consider an investor who, on January 1, 2019, purchases a TIPS bond with an original principal of $100,000, 10 percent coupon rate paid semi-annually, and

Consider an investor who, on January 1, 2019, purchases a TIPS bond with an original principal of $100,000, 10 percent coupon rate paid semi-annually, and 5 years to maturity. If annual inflation rate during the first year is 5 percent, what will be the first coupon payment on this TIPS?

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