Question: Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.30%. Assume annual coupon payments. What is

Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.30\%. Assume annual coupon payments. What is the nominal rate of return on the TIPS bond in the first year? 4.40% 6.90% 3.60% 6.70%

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