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Question 1 1/1 point Consider an investor who purchases a Treasury Inflation-indexed note with an original principal amount of $100,000, a 3.750 percent annual coupon rate (coupon is paid semiannually), and 10 years to maturity. The semiannual inflation rate during the 6 months ending 3 months before the first coupon payment (the 3-month lag is necessary to allow for the release of the official CPI figures) is 1.66 percent. Calculate the adjusted principal amount for the first coupon payment Round the answer to two decimal places Answer: 101,660 Question 2 1/1 point Consider an investor who purchases a Treasury inflation Indexed note with an original principal amount of $100,000, a 5.000 percent annual coupon rate (coupon is paid semiannually), and 5 years to maturity. The semiannual Inflation rate during the 6 months ending 3 months before the first coupon payment (the 3-month lag is necessary to allow for the release of the official CPI figures) Is 1.64 percent. Calculate the flest semi-annual coupon payment based on the adjusted principal Round the answer to two decimal places Answer: 2,541.00 Question 3 1/1 point Consider an investor who purchases a Treasury Inflation-Indexed note with an original principal amount of $100,000, a 2.125 percent annual coupon rate (coupon is pald semiannually), and 10 years to maturity. The semiannual inflation rate during the 6 months ending 3 months before the first coupon payment (the 3-month lag is necessary to allow for the release of the official CPI figures) is 3.16 percent. Over the next 6-month period inflation is 1.55 percent. Calculate the adjusted principal amount for the second coupon payment Round the answer to two decimal places. Answer: 104,758.98

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