Refer the table below and calculate both the real and nominal rates of return on the TIPS bond in the second and 2 years. Assume the coupon rate is 7%. (Do not round intermediate calculations. Round "Nominal return" to 2 decimal places.)

Principal and interest payments for a Treasury Inflation Protected Security

Time	Inflation in Year Just Ended	Par Value	Coupon Payment	+	Principal Repayment	=	Total Payment
0		$1,000.00
1	1.5%	1,015.00	$71.05		$ 0		$ 71.05
2	2.5	1,040.38	72.83		0		72.83
3	1.0	1,050.78	73.55		1,050.78		1,124.33

	Second Year	Third Year
Nominal return	%	%
Real return	%	%