Problem $6-5($LG $6-2)$

Consider an investor who, on January $1,2022,$ purchases a TIPS bond with an original principal of $$116,000,$ an $10$ percent annual $($or $5$ percent semiannual$)$ coupon rate, and $15$ years to maturity.

If the semiannual inflation rate during the first six months is $0\mathrm{.}4$ percent, calculate the principal amount used to determine the first coupon payment and the first coupon payment $($paid on June $30,2022).$

From your answer to part a$,$ calculate the inflation$-$adjusted principal at the beginning of the second six months.

Suppose that the semiannual inflation rate for the second six$-$month period is $1\mathrm{.}0$ 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.

Note: For all requirements, round your answers to $2$ decimal places $($e$.$g$.,32\mathrm{.}16).$