Consider an investor who, on january 1, 2019, purchases a tips bond with an original principal of $117,000, an 12 percent annual (or 6 percent semiannual) coupon rate, and 12 years to maturity. a. if the semiannual inflation rate during the first six months is 0.2 percent, calculate the principal amount used to determine the first coupon payment and the first coupon payment (paid on june 30, 2019). b. from your answer to part a, calculate the inflation-adjusted principal at the beginning of the second six months. c. suppose that the semiannual inflation rate for the second six-month period is 1.3 percent. calculate the inflation-adjusted principal at the end of the second six months (on december 31, 2019) and the coupon payment to the investor for the second six-month period.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to ifrs. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $2,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $3,000,000 to $5,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $6,000,000, with a present value of $4,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $2,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000.