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Problem 10-19 Refer to the table below and calculate both the real and nominal rates of return on the TIPS bond in the second and

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Problem 10-19 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 Coupon Trime Just Ended Par Value Payment Repayment Total Payment Inflation in Year Principal $1,000.00 1,020.00 $40.80 1,050.60 42.02 1,061.11 $ 40.80 42.02 1,103.55 2% 42.44 $1,061.11 Second Year Third Year Nominal return Real return 1% References eBook & Resources Worksheet Difficulty: Intermediate Problem 10-19 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 Coupon Trime Just Ended Par Value Payment Repayment Total Payment Inflation in Year Principal $1,000.00 1,020.00 $40.80 1,050.60 42.02 1,061.11 $ 40.80 42.02 1,103.55 2% 42.44 $1,061.11 Second Year Third Year Nominal return Real return 1% References eBook & Resources Worksheet Difficulty: Intermediate

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