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

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

Principal and Interest Payments for a Treasury Inflation Protected Security
Time Inflation in Year Just Ended Par Value Coupon
Payment		 + Principal Repayment = Total Payment
0 $ 1,000.00
1 2 % 1,020.00 $ 71.40 0 $ 71.40
2 3 1,050.60 73.54 0 73.54
3 1 1,061.11 74.28 $ 1,061.11 1,135.38

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jeff jeffy answered 11 months ago
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