Treasury-Inflation-Protected-Security (TIPS)

We are on January 1^st, 2021. The Treasury-Inflation-Protected-Security (TIPS) that you purchased exactly three years ago (Jan. 1^st, 2018) on the secondary market, at a price of $1,125, just matured today.

This particular TIPS was issued on January 1^st, 2011, at a value of $1,000.

It had a real coupon rate of 1.20% (annualized rate) with the coupon paid semi-annually on July 1st and January 1^st of each year.

The observed inflation rates (annualized) over these past 6 semesters (six-months periods) during which you held the bond were as follows: +0.50%, +0.70%, +0.80%, +0.90%, +1.00%, +0.90%.

1. At what price did the bond mature today?
2. What was the total dollar value received in coupon payments over the past 2 years?
3. What was your annualized return on this investment?

(Note: As requested in class, please provide me with detailed explanations as to how you reach your final answers)