The following table showing the cash flows for TIPS bonds.

Time	Inflation in Year Just Ended			Par Value			Coupon Payment			+	Principal Repayment			=	Total Payment
0				$	1,000.00
1		2.00	%		1,020.00		$	40.80			$	0			$	40.80
2		2.00			1,040.40			41.62				0				41.62
3		3.25			1,074.21			42.97				1,074.21				1,117.18

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.)