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Suppose you purchase a $1,000 TIPS on January 1, 2021. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual

image text in transcribed Suppose you purchase a $1,000 TIPS on January 1, 2021. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 1 percent, 4 percent, 3 percent, and 2 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.) Suppose you purchase a $1,000 TIPS on January 1, 2021. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 1 percent, 4 percent, 3 percent, and 2 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.)

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