•A TIPS purchased on January 1 carries a semiannual-pay coupon of 3.5%. •Par value is $10,000. •Annualized rate of inflation over the next six months is 4%. • • Compute the inflation-adjusted principal and coupon payment at the end of the first 6-month period.
inflation-adjusted principal = 10400 coupon payment = 10400*0.035=364
nope 
I know guys may make mistake on this and that why Posted this. It may appear simple to many.
10200 357
10200 * .0175???
heha168 Wrote: ------------------------------------------------------- > 10200 > 357 still no
10200 x 3.5%/2 = $178.50?
is 3.5% annual or semiannual?
just pay attention to adjusting for the inflation first and then calculate the coupon. Nerd got it correct.
I know the question is confusing.
yeah this is definitely one worth revisting quickly before exam.