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If you invest in 3% coupon, 2-year TIPS (face value of $1,000) and inflation is 5% in year 1 and 4% in year 2, what

If you invest in 3% coupon, 2-year TIPS (face value of $1,000) and inflation is 5% in year 1 and 4% in year 2, what are your real annual cash flows?

$31.5, $1071.2

$30, $1071.2

$30, $1124.76

$31.5, $1124.76

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