Question: Return to question 7. 10 points Refer to the table below and calculate both the real and nominal rates of return on the TIPS bond

 Return to question 7. 10 points Refer to the table below

Return to question 7. 10 points 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 Just Coupon Principal Time Ended Par Value Payment Repayment = Total Payment @ $1,eee.ee 1 3% 1,03e.ee $41.20 $ 41.2e 2 1 1,840.30 41.61 41.61 3 1,050.70 42.03 $1,050.70 1,092.73 + e 1 Answer is not complete. Third Year Nominal return Second Year 5.04 4.51 % % Real return % %

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