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The following table showing the cash flows for TIPS bonds. a. What is the nominal rate of return on the bond in year 2 ?

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The following table showing the cash flows for TIPS bonds. a. What is the nominal rate of return on the bond in year 2 ? If real rate of return is 4.00% per annum (Round your answer to 2 decimal places.) b. What is the real rate of return in year 2? (Round your answer to 2 decimal places.) c. What is the nominal rate of return on the bond in year 3 ? (Round your answer to 2 decimal places.) d. What is the real rate of return in year 3 ? (Round your answer to 2 decimal places.)

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