Refer to the table below and calculate both the real and nominal rates of return...
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Refer to the table below and calculate both the real and nominal rates of return on the TIPS bond in the second and third years. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Principal and Interest Payments for a Security Treasury Inflation Protected Inflation in Principal Repayment Year Just Coupon Payment Time Ended Par Value Total Payment + $1,000.00 1,020.00 0 $71.40 1 2% 0 71.40 2 1,050.60 1,061.11 73.54 3 73.54 0 3 74.28 $1,061.11 1 1,135.38 Second Year Third Year Nominal return % Real return %
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