FIN $420$

SP $2024$

Final Exam

Q$3.$ Suppose you purchase a $$1,000$ TIPS on January $1,2016.$ The bond carries a fixed coupon of $3$ percent. Over the first two years, semiannual inflation is $3$ percent, $4$ percent, $3$ percent, and $2$ percent, respectively. For each six$-$month period, calculate the accrued principal and coupon payment. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$