16 Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 5.60%. Assume annual coupon payments. Coupon + Principal payment repayment Total payment 01:47:08 Inflation in Time year just ended Par value $1,000.00 1 3.6% $1,036.00 2.6% $1,062.94 3 4.6% $1,111.84 0 2 $58.02 $59.52 $62.26 $ 58.02 59.52 $1,174.10 $1,111.84 What is the nominal rate of return on the TIPS bond in the first year? Multiple Choice 0 9.40% 0 10.80% 5.80% O 6.20%