Question: Return to Table and calculate both the real and nominal rates of return on the TIPS bond in the second and thirdyears. Principal Time Just

Return to Table and calculate both the real and nominal rates of return on the TIPS bond in the second and thirdyears.

Principal Time Just Ended Par Value Payment Repayment Inflation in Year Coupon + Total Payment 0 $1,000.00 1,020.00 $40.80 1,050.60 42.02 1,061.11 42.44 $ 40.80 42.02 1,103.55 2% 0 1,061.11

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