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 $6\mathrm{.}50\%$ 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 $6\mathrm{.}50\%$ per annum

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

Nominal rate of return in year $2$

$\%$

Required $A$

Required B

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

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

Real rate of return in year $2$

$\%$

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

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

Nominal rate of return in year $3$

Required $A$

What is the real rate of return in year $3?$

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

Real rate of return in year $3$