capital gain = $ 54.65 and percentage terms =5.26%

Working notes for the above answer is as under

Gain will be calculated as follow

Gain = end of the year value –  begining of year value

= 202.00 /184.8 x 1000  –  191.90/184.80 x 1000

=1093.074  -1038.42

=54.6537

=54.65

capital gain of the TIPS in percentage terms =

=54.65 / 1038.42

=0.052632

=5.26%