Question: Problem 10-19 (Algo) Required: Refer to the table below and calculate both the real and nominal rates of return on the TIPS bond in the
Problem 10-19 (Algo) Required: Refer to the table below and calculate both the real and nominal rates of return on the TIPS bond in the second and third years. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Principal and Interest Payments for a Treasury Inflation Protected Security Inflation in Year Coupon Principal Total Just Ended Par Value Paynent Repayment Payment 0 $1.000.00 1.030.00 $ 61.80 $ 61.80 1,040.30 62.42 62.42 3 1.050.70 63.04 5.1.050.70 1,113.75 Time aces 1 2 0 0 1 Second Year Third Year Nominal return Real return % % %
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