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TABLE 10.1 Principal and interest payments for a Treasury Inflation Protected Security 19. Return to Table 10.1, showing the cash flows for TIPS bonds. (

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TABLE 10.1 Principal and interest payments for a Treasury Inflation Protected Security 19. Return to Table 10.1, showing the cash flows for TIPS bonds. ( O106) a. What is the nominal rate of return on the bond in year 2 ? b. What is the real rate of return in year 2 ? c. What is the nominal rate of return on the bond in year 3 ? d. What is the real rate of return in year 3

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