Calculate the accrued principal and coupon payment

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Question - 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 3 percent, 4 percent, 3 percent, and 2 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment.

Reference no: EM133071932

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