Tips capital return

Assignment Help Business Management
Reference no: EM131335818

1. TIPS Capital Return Consider a 2.75% TIPS with an issue CPI reference of 184.60. At the beginning of this year, the CPI was 191.70 and was at 201.60 at the end of the year. What was the capital gain of the TIPS in percentage terms? (Do not round the intermediate steps. Round your final answer to 2 decimal places.)

2. Determinants of Interest Rate for Individual Securities The Wall Street Journal reports that the rate on 3-year Treasury securities is 6.55 percent, and the 6-year Treasury rate is 6.75 percent. From discussions with your broker, you have determined that expected inflation premium is 2.65 percent next year, 2.60 percent in Year 2, and 3.00 percent in Year 3 and beyond. Further, you expect that real interest rates will be 3.50 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security?

3. Compound Frequency Payday loans are very short-term loans that charge very high interest rates. You can borrow $1,500 today and repay $1,770 in two weeks. What is the compound annual rate implied by this 18 percent rate charged for only two weeks?

4. Interest-on-Interest Consider a $1,100 deposit earning 5 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

5. Interest-on-Interest Consider a $3,200 deposit earning 8 percent interest per year for 7 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

Reference no: EM131335818

Questions Cloud

Demonstrate how the evidence supports the thesis : Effective reasoning that demonstrates how the evidence supports the thesis and the specific arguments being made - A logical organizational structure that clearly and effectively guides readers through the arguments being made
Project assumptions affect procurement : Running short on a deadline.  Procurement class.  Can someone: Examine the relationship between procurement planning and the project management process groups and knowledge areas defined in the 2013 A Guide to the Project Management Body of Knowled..
How do toys influence behavior and self-concept : How do toys influence behavior, self-concept, and identity? What did you observe concerning positive and negative gender stereotyping
What is incentive compatibility : What is incentive compatibility? Why is it necessary for an indirect price discrimination strategy to be incentive compatible?
Tips capital return : 1. TIPS Capital Return Consider a 2.75% TIPS with an issue CPI reference of 184.60. At the beginning of this year, the CPI was 191.70 and was at 201.60 at the end of the year. What was the capital gain of the TIPS in percentage terms? (Do not roun..
What are the advantages to the acquiring entity : What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantages to the acquiring entity?
What are the two component prices of a twopart tariff : What are the differences between the following three pricing strategies: block pricing, segmenting, and quantity discounts?
Developing a search marketing strategy : What options do marketers have when it comes to developing a search marketing strategy?
Calculating costs of issuing stock turbo technology : Calculating Costs of Issuing Stock Turbo Technology Corp. recently went public with an initial public offering of 3.15 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $8.25 per share and the u..

Reviews

Write a Review

 

Business Management Questions & Answers

  Techniques to motivate employees

What techniques will you use to motivate your employees to release the drug before the competition? Also discuss the pros and cons of these techniques.

  Motivation and trainingbriefly explain post empowering the

motivation and trainingbriefly explain post empowering the workforce requires job enrichment. intrinsic motivators are

  Environmental uncertainty

Environmental uncertainty - made up of complexity - Important than the others in terms of effecting change in organization structure?

  Address functional structure that best supports organisation

Create a response where you propose a plan to incentivize a change initiative within your current organization.- Address the functional structure that best supports the organization.

  Model of strategic management of human resources

Review the model of Strategic Management of Human Resources and describe how it impacts an organization. 3-5 Pages excluding cover page, abstract page, and reference page. Students need to support their work with at least 4 academic or professional..

  Describe the key strengths and weaknesses of company

Determine the key strengths and weaknesses of your company, as well as both the primary opportunities and threats that it faces within its industry

  Explain the north american industry classification system

Explain the North American Industry Classification System. - Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?

  Identify and explain a particular program job training

Identify a particular program job training (I choose programs for those leaving incarceration). Identify three articles from current literature that inform program or practice area you selected through theory or issue-specific research.

  Important information about professional ethics

Examine your personal history and views in terms of how they have shaped your professional ethics.

  Briefly introduce the company background - mac cosmetic

(MAC cosmetic) Briefly introduce the company background (e.g., company name, products, business size, location, internal/external interesting facts, etc)

  Associated with profit maximization

A discussion of exactly what costs are associated with profit maximization. A discussion of the concept of "opportunity cost." A discussion of the alternative production opportunities. A discussion of the various constraints which firms face in ma..

  Annual demand for product on periodic inventory system

The annual demand for a product on periodic inventory system is 50,000 units; the replenishment lead time is 9 days. The review period has been established as 16 days. The Inventory Manager wants to hold enough safety stock to cover 15 days of dem..

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