Problem 6-23 Real Returns (LO3) Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 5% paid annually. Assume you buy the bond at its face value of $1,000, and the inflation rate is 8%. a. What will be your cash flow at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cash flow b. What will be your real return? Real 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 return Problem 6-33 Credit Risk (LO5) Suppose that Casino Royale has issued bonds that mature in 1 year. They currently offer a yield of 23%. However, there is a 50% chance that Casino will default and bondholders will receive nothing. What is the expected yield on the bonds? Assume these are zero coupon bonds with annual compounding. (Input the amount as a positive value and as a percent rounded to 1 decimal place.) Expected yield is a of