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Required: 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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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 Just Time Ended 0723 1 221 2% Nominal return Real return Par Value $1,000.00 1,020.00 Coupon Payment + Principal Repayment $ 71.40 0 1,040.40 72.83 0 1,050.80 73.56 $ 1,050.80 Second Year Third Year % % % 90 % = Total Payment $ 71.40 72.83 1,124.36

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