A $1,000 TIPS (Treasury Inflation-Protected Security) is currently selling for $940 and carries a coupon interest rate

Question:

A $1,000 TIPS (Treasury Inflation-Protected Security) is currently selling for $940 and carries a interest rate of 4 percent.
a. If you buy this bond, how much will you receive for your first interest payment, assuming no interest adjustment to principal during this time period?
b. If there's a 1 percent increase in inflation, what will be the new of the bond?
c. What is your new semiannual interest payment?
d. What would the be at assuming a 2.5 percent annual inflation rate and a 10-year period?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...