Consider a newly issued TIPS bond with a $3-$year maturity, par value of $$1,000,$ and coupon rate of $5\%.$ Assume annual coupon payments.

Time Inflation in year just ended Par value Coupon payment $+$ Principal repayment $=$ Total payment

$0$ $ $1,000\mathrm{.}00$

$13\%$ $ $1,030\mathrm{.}00$ $ $51\mathrm{.}500$ $ $51\mathrm{.}50$

$22\%$ $ $1,050\mathrm{.}60$ $ $52\mathrm{.}530$ $ $52\mathrm{.}53$

$34\%$ $ $1,092\mathrm{.}62$ $ $54\mathrm{.}63$ $$1,092\mathrm{.}62$ $ $1,147\mathrm{.}25$

What is the real rate of return on the TIPS bond in the first year?