A pоrtfоliо mаnаger purchаses $1 million par value of a TIPS. The coupon rate is 3.6%. a. (6 pts) Assume that, at the end of the first six months, the inflation rate is 4.0% (annual rate). Compute (i) the inflation-adjusted principal at the end of the first six months,(ii) the coupon payment made to the investor at the end of the first six months. b. (4 pts) Suppose that there is deflation over the life of a TIPS resulting in an inflation-adjusted principal at the maturity date that is less than the initial par value. How much will the U.S. Treasury pay at the maturity date to redeem the principal?