Q5: An investor purchases a TIPS note with an original principal amount of $100,000, a 3 percent annual coupon rate (1.5 percent semiannual coupon rate), and 10 years to maturity. If the semiannual inflation rate during the 6 months is 1 percent, and if inflation is 1.4 percent over the next 6month period, what are the adjusted principal amounts and coupon payments for these time periods?

Find:

Principal

Years to Maturity

Coupon Rate

Semi-Annual Coupon Rate

Period	CPI	Adjusted Principal	Coupon
1	1.00%
2	1.40%
..	..	..	..