Q: An inflation-indexed Treasury bond has a par value of $1,000 and annual coupon rate of 6 percent paid semi-annually. An investor purchases this bond and holds it for one year. During the year, the consumer price index (CPI) increases by 1 percent every six months. Calculate the following: Principal of bond after six months Interest received during first six months Principal of bond at the end of the year Interest received during the last six months Total interest received