The following table showing the cash flows for TIPS bonds. Inflation in Year Just Ended Coupon Payment Principal Repayment + Total Payment Time 0 1 2 3 3.258 3.00 2.25 Par Value $1,000.00 1,032.50 1,063.48 1,087.40 $67.11 69.13 70.68 $ 0 0 1,087.40 $ 67.11 69.13 1,158.08 a. What is the nominal rate of return on the bond in year 2? If real rate of return is 6.50% per annum (Round your answer to 2 decimal places.) Nominal rate of return in year 2 % b. What is the real rate of return in year 2? (Round your answer to 2 decimal places.) Real rate of return in year 2 % c. What is the nominal rate of return on the bond in year 3? (Round your answer to 2 decimal places.) Nominal rate of return in year 3 8.15 % The following table showing the cash flows for TIPS bonds. Inflation in Year Just Ended Coupon Payment Principal Repayment + Total Payment Time 0 1 2 3 3.258 3.00 2.25 Par Value $1,000.00 1,032.50 1,063.48 1,087.40 $67.11 69.13 70.68 $ 0 0 1,087.40 $ 67.11 69.13 1,158.08 a. What is the nominal rate of return on the bond in year 2? If real rate of return is 6.50% per annum (Round your answer to 2 decimal places.) Nominal rate of return in year 2 % b. What is the real rate of return in year 2? (Round your answer to 2 decimal places.) Real rate of return in year 2 % c. What is the nominal rate of return on the bond in year 3? (Round your answer to 2 decimal places.) Nominal rate of return in year 3 8.15 %