1. What is the (inflation-adjusted) dollar coupon interest that will be paid in cash at the end of the first six months? 2. What is the (inflation-adjusted) dollar coupon interest that will be paid in cash at the end of the second six months? 3. What is the inflation-adjusted principal at the end of the 2nd six months?

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.