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Consider an investor who, on January 1, 2022, purchases a TIPS bond with an original principal of $111,000, an 10 percent annual (or 5 percent

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Consider an investor who, on January 1, 2022, purchases a TIPS bond with an original principal of $111,000, an 10 percent annual (or 5 percent semiannual) coupon rate, and 15 years to maturity o. If the semiannual inflation rate during the first six months is 0.5 percent calculate the principal amount used to determine the first coupon payment and the first coupon payment (paid on June 30, 2022) b. From your answer to parta, 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 1.3 percent Calculate the inflation-adjusted principal at the end of the second six months (on December 31, 2022) and the coupon payment to the investor for the second six month period, (For all requirements, round your answers to 2 decimal places. (0.9., 32.16) Amount Principal amount Coupon payment b. Inflation-adjusted principal Inflation-adjusted principal at the end of the second six months Coupon payment

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