Refer to the table below and calculate both the real and nominal rates of return on...
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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 Time 0 1 2 3 in Year Just Ended. 3% 3 1 Nominal return Real return Par Value $1,000.00 1,030.00 1,060.90 1,071.51 Second Year % % Coupon Payment + $ 51.50 53.05 53.58 Third Year Principal Repayment 0 % % 0 $ 1,071.51 = Total Payment $ 51.50 53.05 1,125.08 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 Time 0 1 2 3 in Year Just Ended. 3% 3 1 Nominal return Real return Par Value $1,000.00 1,030.00 1,060.90 1,071.51 Second Year % % Coupon Payment + $ 51.50 53.05 53.58 Third Year Principal Repayment 0 % % 0 $ 1,071.51 = Total Payment $ 51.50 53.05 1,125.08
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