Question: Consider a Treasury Inflation Protected Security with a 10-year maturity, par value of $1,000, and a coupon rate of 5%. Assume annual coupon payments. Given

Consider a Treasury Inflation Protected Security with a 10-year maturity, par value of $1,000, and a coupon rate of 5%. Assume annual coupon payments.

Given the inflation rates for the first 5 years of the bond's 10-year maturity, find the adjusted coupon pay for year 4.

Round your answer to the nearest $0.1, i.e., one decimal place.

Year Inflation
1 1%
2 1.5%
3 2%
4 2.3%
5 1.8%

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