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Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.80%. Assume annual coupon payments. Coupon Payment + Inflation in Time Year Just Ended Par Value $1,000.00 2.8% $1,028.00 1.8% $1,046.50 3 3.8% $1,086.27 Principal Repayment Total = Payment ON $49.34 $50.23 $ 52.14 0 0 $1,086.27 $ 49.34 $ 50.23 $1,138.41 What is the nominal rate of return on the TIPS bond in the first year? 8.40% 7.73% 4.60% 4.93%