The following table showing the cash flows for 3-year TIPS bonds. Suppose the bonds make annual coupon payments and the coupon rate is 6%.
Scenario: Inflation
Year	Annual Inflation Rate	Par Value	Coupon	Principal (Par)	Total Payment
	(%)		Payment	Repayment
0(Today)		1000
1	3.25			0	0
2	4			0	0
3	1.55				0
					*You don't need to edit this column.
Scenario: Deflation
Year	Annual Inflation Rate	Par Value	Coupon	Principal (Par)	Total Payment
	(%)		Payment	Repayment
0(Today)		1000
1	-3.25			0	0
2	-4			0	0
3	-1.55				0
					*You don't need to edit this column.