Question: 6. Consider a newly issued TIPS bond with a three year maturity, par value of $1000, and a coupon rate of 7%. Assume annual coupon

6. Consider a newly issued TIPS bond with a three year

6. Consider a newly issued TIPS bond with a three year maturity, par value of $1000, and a coupon rate of 7%. Assume annual coupon payments. Time Inflation in Par Value Coupon Principal Total year just Payments Payment Payment ended 0 $1000.00 3.0% 2 3.5% 3 4.5% a) Fill in the shaded cells with amounts in the above table. b) What is the nominal rate of return on the TIPS bond in the first year? c) What is the real rate of return on the TIPS bond in the first year

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