Guarantees the purchasing power of the investment

Assignment Help Finance Basics
Reference no: EM13255069

The "Inflation-Plus" CD is the safer investment because it guarantees the purchasing power of the investment. Using the approximation that the real rate equals the nominal rate minus the inflation rate, the CD provides a real rate of 1.5% regardless of the inflation rate.

Reference no: EM13255069

Questions Cloud

What is the Kcat for the enzyme : If the molar mass of the enzyme is 140,000 g/mol, what is the Kcat for the enzyme? Is the enzyme catalytically perfect? Suppose the experiment were repeated with five times the amount of enzyme. How would Km and Vmax be affected?
Financial manager researching investments : Imagine that you are a financial manager researching investments for your client that align with its investment goals. Use the Internet to research any U.S. publicly traded company that you may consider as an investment opportunity for your c..
Atcase is an allosteric enzyme : ATCase is an allosteric enzyme at the beginning of the pathway for the biosynthesis of the nucleotides, CTP and UTP. ATCase is activated in vitro by ATP adn inhibited by CTP.
Solve the vegetarians-and-cannibals puzzle : Solve the vegetarians-and-cannibals puzzle for the case there are three vegetarians and three cannibals to be transported from one side of a river to the other.
Guarantees the purchasing power of the investment : The "Inflation-Plus" CD is the safer investment because it guarantees the purchasing power of the investment.
Incorporated v. first union national bank : American Business Financial Services, Inc. (ABFI), a Pennsylvania firm, sells and services loans to businesses and consumers. First Union National Bank, with its principal place of business in North Carolina, provides banking services. Alan Boyer, an..
Write a program which prompts the user to enter four integer : Write a program which prompts the user to enter four integers. The program then computes and displays their sum and average (displayed in the format 999.99)
Business capital using both debt and equity options in today : Describe the advice that you would give to the client for raising business capital using both debt and equity options in today's economy
Discuss the history of the death penalty : Discuss the history of the death penalty and examine the impact the court case Furman v. Georgia (1972) had on the death penalty across America. Discuss the arguments on both sides of the issue. Include what you see for the future of capital punishme..

Reviews

Write a Review

Finance Basics Questions & Answers

  Define valuation

Discuss and explain valuation, and describe why it is important for the financial manager to understand the valuation process?

  The conservative approach to financing funds requirements

A decrease in a company's ration of current liabilities to total assets profitability and risk, as reflected by a in net working capital, The conservative approach to financing funds requirements suggests financing both short- and long-term needs;

  Define financial risk

When we think "risk" in a financial sense, the meaning differs from the conventional definition. Describe what is meant by "risk" in the financial/investment realm.

  Calculate price per share after the split

Capra's stock sells at $60 a share. Capra's stock trades at $60 a share. The corporation is planning a 3-for-2 stock split. Currently, the company has EPS of $3.00, DPS of $0.50, and ten million shares of stock outstanding.

  Determine stock value

Garrett Corporation has been going through a difficult financial period. Over the past three year, its stock price has dropped from $50 to $18 per share. Throughout this downturn, Garrett has managed to pay a $1 dividend every year.

  Objective type questions on periodic inventory system

Objective type questions on periodic inventory system and what is the inventory method that would result in the highest ending inventory is

  Calculates the blended interest rate

Make a usable spreadsheet that can compute the blended interest rate for two separate loans. Below is an example of the output information that this spreadsheet would produce for this particular scenario:

  Explain the term structure of interest rates

One method used to obtain an estimate of the term structure of interest rates is called bootstrapping. Suppose you have a one-year zero coupon bond with a rate of r1 and a two-year bond with an annual coupon payment of C

  Us treasury bond yield

Find out the amount of the coupon interest payment you would receive each year if you bought the bond? Find out the bond's Yield to Maturity, or YTM, assuming you purchased it for the current offering price?

  Calculate the effective financing rate

Maloney Manufacturing Corporation obtains a one-year loan of 2,000,000 Sudanese dinar at an interest rate of 6 percent. At the time the loan is extended, the spot rate of the dinar is $.005

  Calculating profitability and liquidity ratios

Taking the example of financial statements of any existing company for any two years, perform a ratio analysis using profitability ratios and liquidity ratios.

  Currencies of industrialized countries

Why do you think the bid/ask spread is higher for pesos than it is for currencies of industrialized countries. Elucidate how does this affect a U.S. firm which does substantial business in Mexico.

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