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Suppose you purchase a $1,000 TIPS on January 1, 2013. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual

Suppose you purchase a $1,000 TIPS on January 1, 2013. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 4 percent, 2 percent, 3 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Accrued Principal Coupon Payment
First 6 months $ $
Second 6 months $ $
Third 6 months $ $
Fourth 6 months $ $

Answers Are NOT:

Accrued

1000

1015.60

1031.14

1047.07

Coupon

15.60 (this is the answer for first 6 month coupon payment)

15.54

15.93

16.18

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