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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

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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 Inflation in Year Coupon Principal Time Just Ended Par Value Payment + Repayment 2% $ 61.20 0 3 63.04 0 1 63.67 $ 1,061.11 1 Third Year Nominal return % Real return % 0123 $1,000.00 1,020.00 1,050.60 1,061.11 Second Year % %

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