Question: You have purchased a two - year TIPS with a face value of $ 1 , 0 0 0 , an annual coupon rate of

You have purchased a two-year TIPS with a face value of $1,000, an annual coupon rate of 4%, and semiannual coupon payments. The inflation rate (not annualized) during each 6-month period is 1.5%,2%,2%, and 2.4%. What is the final principal amount of the bond at maturity? Round your answer to two decimals with no formatting.

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