User Account

All Pages

Nominal rate of return

Assignment Help Finance Basics
Reference no: EM131317185

Angelo purchased a 7% annual coupon bond one year ago for $987. At the time of purchase, the bond had six years to maturity. Over the past year inflation has been 3.2%. The market required return on this bond today is 8%. If Angelo sells the bond today at the market price, what real rate of return will he realize on this investment?

You purchased a five-year 6% annual coupon bond one year ago for $990. You sold the bond today when the market rate of return is 4.5%. If the inflation rate for the past year was 2.0%, what nominal rate of return did you earn on this investment?

Reference no: EM131317185

Questions Cloud

What is the weighted average cost of capital : The preferred stock has a current price of $10 per share and pays a level $1.00 dividend. The firm is in the 35% tax bracket. What is the weighted average cost of capital?"
What is the probability that exactly two servers fail : A data center contains 1000 computer servers. Each server has probability 0.003 of failing on a given day. What is the probability that exactly two servers fail? What is the probability that fewer than 998 servers function
What was the meiji restoration : what was the columbian exchange?what factors gave rise to the youth counterculture ofthe 1960's? how did the counterculture affect american culturein the following decades?trace the main events that led to the unification of italy.
How you assess level of ethical interpersonal communication : How would you assess the level of ethical interpersonal communication in organization at which you are or have been employed?
Nominal rate of return : You purchased a five-year 6% annual coupon bond one year ago for $990. You sold the bond today when the market rate of return is 4.5%. If the inflation rate for the past year was 2.0%, what nominal rate of return did you earn on this investment?
What function does same gate compute using positive logic : Is there a Boolean function that cannot be realized using only AND and ORgates? If so, give a simple example; if not, explain.
What is value of shareholders equity account for firm : BUBBA SHRIMP, Inc. with current assets of $25,300, net fixed assets of $27,500, current liabilities of $14,300, and long-term debt of $12,000; calculate the following: What is the value of the shareholders' equity account for this firm?
Compose a short email memo advising your employees : As the HR manager, compose a short email memo advising your employees on cell phone etiquette. Choose a tone and level of formality that you feel is appropriate. Remember to provide a course of action for employees who want to provide feedback.
Compare and contrast one aspect of two civilizations : TWO primary sources which include one for each of the civilizations/nations you are comparing and contrasting. As a reminder, a primary source "is a document or physical object which was written or created during the time under study. These source..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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