Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.60%. Assume annual coupon payments. Coupon Payment + Principal Repayment Total Payment Inflation in Time Year Just Ended 0 1 2.6% 2 1.6% 3 3.6% Par Value $1,000.00 $1,026.00 $1,042.42 $1,079.95 $ 47.20 $ 47.95 $49.68 0 0 $1,079.95 $ 47.20 $ 47.95 $1,129.63 What is the nominal rate of return on the TIPS bond in the first year? 4.20% 7.80% 7.32% 4.72% You buy an 7-year $1,000 par value bond today that has a 5.20% yield and a 5.20% annual payment coupon. In 1 year promised yields have risen to 6.20%. Your 1-year holding-period return was. 0.62% -2.75% 0.31% -4.89%