Suppose that the coupon rate for a TIPS is 5%. Suppose that further that an investor purchases $20000 pf par value (initial principal) of this issue today and that the annual inflation rate is 3% for the first 6 months and 5% (annually) for the second 6 months of the year. Calculate the total dollar coupon interest that will be paid at the end of the first year ?

Note ; TIPS makes semi-annual coupon payments