A 5 year, 1% coupon (paid annually) TIPS is issued at $1000. The face value of the bond is $1000. Inflation over the next 5 years is:

1	8%
2	6%
3	3%
4	7%
5	10%

What is your holding period return over the 5 years?

If a Treasury was issued at the same time at par and the real risk free rate of interest at the time was 1%, what coupon rate would give an investor the same rate of return as the TIPS above?