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. Inflation in year just Time ended Coupon + Principal = Total payment repayment payment 1 3.6% 2.6% 4.6% Par value $1,000.00 $1,036.00 $1,062.94 $1,111.84 $58.02 $59.52 $62.26 0 $ 58.02 0 $ 59.52 $1,111.84 $1,174.10 3 What is the nominal rate of return on the TIPS bond in the first year? Multiple Choice 9.40% 6.20% $1,111.84 $62.26 $1,111.84 $1,174.10 What is the nominal rate of return on the TIPS bond in the first year? Multiple Choice 9.40% 6.20% 5.80% 10.80%