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Refer the table below and calculate both the real and nominal rates of return on the RRB bond in the second and third years

Finance Dec 10, 2020

Refer the table below and calculate both the real and nominal rates of return on the RRB bond in the second and third years. Assume the coupon rate is 9%. (Do not round intermediate calculations. Round "Nominal return" to 2 decimal places. Enter "Real return" as a whole percentage. Omit the "%" sign in your response.) Principal and interest payments for a Treasury Inflation Protected Security Total Payment Inflation in Year Time Just Ended 0 1 3.0% 2 2.0 3 1.0 Coupon Principal Par Value Payment + Repayment $1,000.00 1,030.00 $ 92.70 $ 1,050.60 94.55 1,061.11 95.50 1,061.11 $ 92.70 94.55 1,156.61 Second Year Third Year % % Nominal return Real return % 

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