Question: Question 2 5 pts Refer to the table below and calculate the nominal rates of return on the TIPS bond in the second year assume

Question 2 5 pts Refer to the table below and calculate

Question 2 5 pts Refer to the table below and calculate the nominal rates of return on the TIPS bond in the second year assume the bond price is at the par. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Principal and Interest Payments for a Treasury Inflation Protected Security Inflation in Year Just Coupon Principal Time Ended Par Value Payment + Repayment = Total Payment 0 $ 1,000.00 1 3% $ 1,030.00 $ 61.80 0 $ 61.80 2 3% $ 1,060.90 $ 63.65 0 $ 63.65 3 1% $ 1,071.51 $ 64.29 $ 1,071.51 $ 1,135.80

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