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I need the nomina return and real return for the second and third year. Required: Refer to the table below and calculate both the real
I need the nomina return and real return for the second and third year.
Required: 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 Coupon Payment + Principal Repayment Total Payment Time 0 Just Ended Par Value $1,000.00 3% 1,030.00 $ 41.20 0 $ 41.20 3 1,060.90 0 42.44 42.86 42.44 1,114.37 1,071.51 $ 1,071.51 Third Year 123 1 Nominal return Real return Second Year do do % % de de % % Step by Step Solution
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