Bond annual coupon payment

### Question Description

I’m working on a Business exercise and need support.

What is the annual coupon payment paid in year 2 of a 10 year maturity TIPS with a par value of \$1,000, annual coupon rate of 4%, and inflation of 1% in year 1, 2% in year 2 and 4% in year 3?

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

2/100*1000*1=\$20

1000+20=\$1020

the above is the coupon payment in year 2.

589189pnm (105)
Carnegie Mellon University
Review
Review

Anonymous
Return customer, been using sp for a good two years now.

Anonymous
Thanks as always for the good work!

Anonymous
Excellent job

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors