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You have purchased a two-year TIPS with a face value of $1,000, an annual coupon rate of 4%, and semiannual coupon payments. The inflation rate
You have purchased a two-year TIPS with a face value of $1,000, an annual coupon rate of 4%, and semiannual coupon payments. The inflation rate (not annualized) during each 6-month period is 1.5%, 2%, 2%, and 2.7%. What is the final principal amount of the bond at maturity? Round your answer to two decimals with no formatting.
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