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4 Problem 6-23 Real Returns (LO3) 9.09 po Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 4%

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4 Problem 6-23 Real Returns (LO3) 9.09 po Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 4% paid annually. Assume you buy the bond at its face value of S1000, and the inflation rate is 8% .. What will be your cash flow at the end of the year? (Do not round intermediate calculations. Round your answer to 2 to 2 decimal places) Book Cash flow References b. What will be your real return? Rea return c. What will be your nominal return? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Nominal resum

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