What real rate of return will the investor receive

Reference no: EM13318152

An investor bought a tax-free provincial bond, at a cost of $1000 which will pay $50 interest each year for 20 years. The bond will mature in 20 years and return the original $1000. If there is a 2% annual inflation during this period, what real rate of return will the investor receive?

Reference no: EM13318152

Questions Cloud

Create class diagrams and dynamic models : Create class diagrams and dynamic models (sequence, collaboration, state and activity diagrams) with UML notation and compare the syntax, semantics and pragmatics of UML

Explain complete combustion of methane : Complete combustion of methane When methane () burns, it reacts withoxygen gas to produce carbon dioxide and water. The unbalancedequation for this reaction is This type of reaction is referred to as a complete combustionreaction. PART A What coef..

Calculate the capacitance of this capacitor : The magnitude of the charge on each plate of a parallel plate capacitor is 4 %u03BCC, What is the capacitance of this capacitor

Determine the work done by the external force : Point charges, Q1 = +46 nC and Q2 = -75 nC, are placed as shown. The work done by the external force is closest to

What real rate of return will the investor receive : An investor bought a tax-free provincial bond, at a cost of $1000 which will pay $50 interest each year for 20 years. The bond will mature in 20 years and return the original $1000.

Determine the resistance of the galvanometer : The deflection in the moving coil galvanometer is reduced to half when it was shunted with a 40 ohm coil. The resistance of the galvanometer is what

Explain one line of the hydrogen spectrum : For one line of the hydrogen spectrum is .4118 x 10-4 cm. Use this value in the Rydberg equation to calculate the RH value using n1 = 2, and n2 = 3.

Commercial and corporation law : Administrative bodies be further harmonized to create one ‘super' regulator for design and enforcement of regulation for all business entities?

Find how far is the object from the converging lens : A converging lens (f1 = 24.0 cm) is located 56.0 cm to the left of a diverging lens (f2 = %u221228.0 cm). How far is the object from the converging lens

User Account

All Pages