Suppose that the coupon rate for a 5 year TIPS is 2%, payable semi-annually. Suppose further that an investor purchases $10,000 of par value (initial principal) of this issue today and that the annual inflation rate is -3%. + a. What is the inflation-adjusted principal at the end of six months? (3 points) b. What is the dollar coupon interest that will be paid in cash at the end of the first six months? (3 points) c. Suppose that there is deflation for the entire five year period. What is the principal that will be paid by the Department of the Treasury at the maturity date? (2 points)