The following table showing the cash flows for TIPS bonds.

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

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

$12\mathrm{.}50\%1,025\mathrm{.}00$ $ $51\mathrm{.}25$ $ $0$ $ $51\mathrm{.}25$

$24\mathrm{.}001,066\mathrm{.}0053\mathrm{.}30053\mathrm{.}30$

$33\mathrm{.}051,098\mathrm{.}5154\mathrm{.}931,098\mathrm{.}511,153\mathrm{.}44$

Required:

What is the nominal rate of return on the bond in year $2?$ If real rate of return is $5\mathrm{.}00\%$ per annum

What is the real rate of return in year $2?$

What is the nominal rate of return on the bond in year $3?$

What is the real rate of return in year $3?$The following table showing the cash flows for TIPS bonds.

Required:

a$.$ What is the nominal rate of return on the bond in year $2?$ If real rate of return is $5\mathrm{.}00\%$ per annum

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 $3?$

Complete this question by entering your answers in the tabs below.

What is the nominal rate of return on the bond in year $2?$ If real rate of return is $5\mathrm{.}00\%$ per annum

Note: Round your answer to $2$ decimal places.