Calculate the tips anticipated nominal return

Assignment Help Finance Basics
Reference no: EM131300665

Suppose you have got $100,000 to save and you are considering buying a ten-year TIPS with the following conditions: A one-year TIPs has a real interest rate of 4%. The consumer price index today is 120. The anticipated inflation rate is 4% p.a. Calculate the nominal payment on the TIPs you can expect in ten years. Calculate the TIPs anticipated nominal return.

Reference no: EM131300665

Questions Cloud

Future real estate prices affected interest rates : Why would a government choose to issue a perpetuity which requires payment forever, instead of a terminal loan, such as a fixed-payment loan, discount bond or coupon bond? what effect will a sudden increase in peoples expectations of future real esta..
Someone else if you cannot perform : Need help with management class project. The instruction are provided. Needs to be 5 pages and answer all the question/ satisfy criteria. Please respect my time and do not wait till last minute to open it up to someone else if you cannot perform.
Organizational culture of mcdonald : How should Easterbrook adapt the organizational culture of McDonald's to achieve his strategic plan?
Why is the method you chose more comfortable for you : identify which method you are more comfortable with. Why is the method you chose more comfortable for you?Be sure to include a brief description of the contents of the tables, and give specific examples of codes you can find more easily.
Calculate the tips anticipated nominal return : Suppose you have got $100,000 to save and you are considering buying a ten-year TIPS with the following conditions: A one-year TIPs has a real interest rate of 4%. Calculate the TIPs anticipated nominal return
Compute the value of the average collection period : Oral Roberts Dental Supplies has annual sales of $5,200,000. Ninety percent are on credit. The firm has $550,000 in accounts receivable. Compute the value of the average collection period
What is the rate of free convection heat transfer per unit : What is the rate of free convection heat transfer per unit surface area between the two plates if they are inclined at an angle of 60° from the horizontal?
Visit financial data and make relevant comments : Visit Unilever website and review their 2006-2015 financial data and make relevant comments concerning its strategy and performance.
Explain what obligation us government has toward its citizen : In your initial post, explain what obligations the U.S. government has towards its citizens and how can these obligations impact individual and group rights?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Calculate profit and the return on investment

Lauren own a margin account and deposits of $50,000. Suppose the initial margin requirements is 40 percent, and The Gentry shoe corporation is selling at $25.00 per share:

  Calculate the probability density function of the random

Let X be a normal variable with parameters (2, 4). Show that E(e^4X)=e^40 and calculate the probability density function of the random variable 2(e^4X) when X is a standard normal variable

  What rate would you expect to see on a treasury bill

Suppose the real rate is 2.5% and the inflation rate is 4.7%. What rate would you expect to see on a Treasury bill?

  How many shares would an investor end up

The company's stock is selling for $30 per share. The company had total earnings of $6,900,000 during the year. With 2,300,000 shares outstanding, earnings per share were $3. The firm has a P/E ratio of 10.

  Explain how the classic works on asset valuation by graham

explain how the classic works on asset valuation by graham and dodd and dodd and john burr williams are re?ected in

  1 consider a small opened economy where the trade sector

1. consider a small opened economy where the trade sector plays an important role for the economic growth of the

  Rate fluctuation in the price of above products & prepare

1. The various rates of financial products are:Gold - $735/Oz; Gold - Rs. 13000/10gms; Re/USD - Rs. 48; Oil - $148

  Decide upon an initiative you want to implement that would

decide upon an initiative you want to implement that would increase sales over the next five years.using the sample

  Marshal is considering the purchase of new equipment that

marshal corporation sells a single product at a price of 62 per unit. fixed costs total 640000 and variable costs per

  Define effect of recognizing this lawsuit in 2012

Err Company has a major lawsuit against them for unsafe products. It recognizes a huge liability in 2012 of $300M. The effect of this liability is to decrease stockholders' equity by 50%. In 2013, the effect of recognizing this lawsuit in 2012, all e..

  Calculate approximate current market price of common stock

Big Tom's stock is not expected to pay cash dividends for three years. In years 4, 5, and 6 the cash dividend will be $6 a year, and year seven to infinity the cash dividend will be $8 a year.

  Explain what is the reasonable cost of capital for average

Explain What is the reasonable cost of capital for average and high and low risk projects Suppose a firm estimates its WACC to be 10 %.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd