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

Time Inflation in Year Just Ended Par Value Coupon Payment $+$ Principal Repayment $=$ Total Payment

$0$ $$1,000\mathrm{.}00$

$13\%1,030\mathrm{.}00$ $ $41\mathrm{.}200$ $ $41\mathrm{.}20$

$211,040\mathrm{.}3041\mathrm{.}61041\mathrm{.}61$

$311,050\mathrm{.}7042\mathrm{.}03$ $ $1,050\mathrm{.}701,092\mathrm{.}73$