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Suppose that the coupon rate for a TIPS is 2.6%. Suppose further that an investor purchases $100,000 of par value (initial principal) of this issue

Suppose that the coupon rate for a TIPS is 2.6%. Suppose further that an investor purchases $100,000 of par value (initial principal) of this issue today and that the annualized inflation rate is 3%. If the annualized inflation rate over the following 6 months is 1.5%.

What is the coupon payment (in $) at the end of the year?

Round your answer to 2 decimal places. For example, if your answer is 5.567, please write down 5.57.

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