Suppose a 10-year TIPS bond with an original principal of $100,000 and 4 percent coupon rate paid semiannually. If the inflation rate for first and second six-month period is 0.5 percent, and then the inflation rate becomes 1 percent for every six months until the end of maturity. What is the coupon payment at the end of second year?

Select one:

a. $2,060.65

b. $2,102.07

c. $2,144.32

d. $2,187.42

e. None of the above