Refer to the table below and calculate both the real and nominal rates of return on...

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Finance

Refer to the table below and calculate both the real and nominalrates of return on the TIPS bond in the second and third years.(Do not round intermediate calculations. Round your answersto 2 decimal places.)

Principal and Interest Payments for a TreasuryInflation Protected Security
TimeInflation in Year Just EndedPar ValueCoupon
Payment
+Principal Repayment=Total Payment
0$1,000.00
12%1,020.00$71.400$71.40
231,050.6073.54073.54
311,061.1174.28$1,061.111,135.38

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Refer to the table below and calculate both the real and nominalrates of return on the TIPS bond in the second and third years.(Do not round intermediate calculations. Round your answersto 2 decimal places.)Principal and Interest Payments for a TreasuryInflation Protected SecurityTimeInflation in Year Just EndedPar ValueCouponPayment+Principal Repayment=Total Payment0$1,000.0012%1,020.00$71.400$71.40231,050.6073.54073.54311,061.1174.28$1,061.111,135.38

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