Consider an investor who, on January 1,2022 , purchases a TIPS bond with an original principal of $108,000, an 10 percent annual (or 5 percent semiannual) coupon rate, and 10 years to maturity. If the semiannual inflation rate during the first six months is 0.5 percent, calculate the principal amount used to determine the first coupon payment and he first coupon payment (paid on June 30, 2022).
