TIPS A TIPS bond with a $1,000 par value was issued three years ago with a coupon rate of 6%. In the first year inflation was 3%, in the second year 3.5% and in the third year 4%. The coupon payment at the end of the third year would be Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 6.5% and exactly 7 years to maturity. The present value of the coupon stream represents of the total bond's value