2. (8 Points) Mr. Brown buys a TIPS bond on January 1, 2018. The original principal is $400,000. The annual coupon rate is 8%. The bond has 12 years to maturity. a) Suppose the semiannual inflation rate during the first six months is 1%. What is the inflation-adjusted principal at the end of the first six months (on June 30, 2018)? Show your calculations. b) What is the amount of the first coupon payment, paid on June 30, 2018? Show your calculations C) Suppose the semiannual inflation rate for the second six-month period is 1.2%. What is the inflation-adjusted principal at the end of the second six-month period on December 31, 2018)? Show your calculations. d) What is the amount of the coupon payment at the end of the second six-month period (on December 31, 2018)? Show your calculations