Consider an investor who purchases a Treasury inflation-indexed bond with an original principal amount of $1,000, a 3.875 percent annual coupon rate (coupon is paid semiannually), and 30 years to maturity. The semiannual inflation rate during the 6 months ending 3 months before the first coupon payment (the 3-month lag is necessary to allow for the release of the official CPI figures) is 0.66 percent. Calculate the first semi-annual coupon payment based on the adjusted principal.

Round the answer to two decimal places.

Your Answer: