I’m answering fixed income questions on Q bank:

Investor holds semi-annual TIPS of $100,000 face value, trading at par. Coupon rate = 4%. Annual inflation rate = 2.5%. What is the first coupon payment?

I did 100,000 * 1.025 * (0.04 / 2) = $2050 (principle, add inflation, times half the coupon rate)

Apparently the answer is: 100,000 * **1.0125** * (0.04 / 2) = $2025

But I don’t understand why. Typo? Or am I missing something obvious?