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Refer to the table below and calculate both the real and nominalrates of return on the TIPS bond in the second and third years.(Do not round intermediate calculations. Round your answersto 2 decimal places.)

Principal and Interest Payments for a TreasuryInflation Protected Security
	Time	Inflation in Year Just Ended			Par Value			Coupon Payment			+	Principal Repayment			=	Total Payment
	0				$	1,000.00
	1		1	%		1,010.00		$	50.50				0			$	50.50
	2		2			1,030.20			51.51				0				51.51
	3		1			1,040.50			52.03			$	1,040.50				1,092.53

Suppose that today’s date is April 15. A bond with a 9% couponpaid semiannually every January 15 and July 15 is quoted as sellingat an ask price of 1,015.000. If you buy the bond from a dealertoday, what price will you pay for it? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)

A newly issued 20-year maturity, zero-coupon bond is issued witha yield to maturity of 8.5% and face value $1,000. Find the imputedinterest income in the first, second, and last year of the bond'slife. (Do not round intermediate calculations.Round your answers to 2 decimal places.)

Masters Corp. issues two bonds with 18-year maturities. Bothbonds are callable at $1,075. The first bond is issued at a deepdiscount with a coupon rate of 6% to yield 11.3%. The second bondis issued at par value with a coupon rate of 12.50%