1. Suppose a portfolio manager purchases 100 000 USD par values Treasury inflation protected security. The real rate determined by auction is 2,8%.
   1. Assume that at the end of first 6 months the CPI is 2,6% (annual rate). Compute
      1. Inflation adjustment to the principal after end of first 6 months

2. Inflation adjusted principal after end of first 6 months

3. The coupon payment to the investor at the end of first 6 months