Question: Consider a newly issued TIPS bond with a 3 - year maturity, par value of $ 1 , 0 0 0 , and coupon rate

Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 6.00%. Assume annual coupon paynents.
What is the nominal rate of return on the TIPS bond in the first year?
Multiple Choice
12.00%
6.24%
10.24%
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 Consider a newly issued TIPS bond with a 3-year maturity, par

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