TIPS Interest and Par Value

Assignment Help Financial Management
Reference no: EM131043480

TIPS Interest and Par Value A 3.75 percent TIPS has an original reference CPI of 170.9. If the current CPI is 206.2, what is the current interest payment and par value of the TIPS? (Round your answer to 2 decimal places.)

$1,000, $22.62, respectively

$1,000, $6.55, respectively

$1,206.55, $6.55, respectively

$1,206.55, $22.62, respectively

Reference no: EM131043480

Questions Cloud

What is equivalent annual cost of piece of equipment : What is the equivalent annual cost of a piece of equipment that requires an initial investment of $49,800, is expected to last 7 years, and requires annual maintenance costs of $3,970 if the appropriate discount rate is 9.2 percent?
Calculate the two projects NPVs and IRRs : Project Pavilion has a cost of $9,000 and is expected to produce benefits (cash flows) of $2500 per year for 5 years. Project Freedom costs $24,000 and is expected to produce cash flows of $6,400 per year for 5 years. Calculate the two projects’ NPVs..
What is payback period of project with average cash outflows : What is the payback period of a project with average cash outflows of $8,000, average annual cash inflows of $10,000, and an initial investment of $13,000? The payback period is how many years?
Find the value of her legacy at the time of the bequest : Jasper is bequeathed a thirty year deferred annuity that has a payment at the the end of each third year. The first payment is for $15000 and is made five years after she receives inheritance. There is always an increase of $ 4000 from one payment to..
TIPS Interest and Par Value : TIPS Interest and Par Value A 3.75 percent TIPS has an original reference CPI of 170.9. If the current CPI is 206.2, what is the current interest payment and par value of the TIPS?
What is the days sales in inventory : Bobaflex Corporation has ending inventory of $686,373 and cost of goods sold for the year just ended was $4,765,135. What is the inventory turnover? What is the days’ sales in inventory? How long on average did a unit of inventory sit on the shelf be..
Difference in benefits required and miscellaneous benefits : Employee benefits have become very important to many employees. When benefits are cut, employees can become disgruntled and feel cheated. Many employees do not realize or understand the difference between the benefits required and miscellaneous benef..
Calculated financial ratios against the industry benchmarks : Calculate the financial ratios for the assigned Walmart Stores, and then interpret those results against company historical data as well as industry benchmarks: Compare the financial ratios with each of the preceding three (3) years. Compare the calc..
Equity fund with an expected risk premium : You manage an equity fund with an expected risk premium of 12.8% and a standard deviation of 42% The rate on Treasury bills is 3.4% Your client chooses to invest $75,000 of her portfolio in your equity fund and $75,000 in a T-bill money maiket fund W..

Reviews

Write a Review

Financial Management Questions & Answers

  Firms total market value is unchanged by the split

Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $80 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?

  What was total long-term debt and total liabilities

At year-end 2015, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $390,000. Sales, which in 2015 were $2.1 million, are expected to increase by 20% in 2016. What was Wallace's total long-term debt in 2015? How much ..

  About mergers and acquisitions and taxes

In a statutory merger, only assets and liabilities shown on the target firm’s balance sheet automatically transfer to the acquiring firm. Which of the following is not true about mergers and acquisitions and taxes? Which of the following is not true ..

  What is the current yield or cost of the preferred stock

Wallace Container Company issued $100 per value preferred stock 10 years ago. The stock provided a 9 percent yield at the time of issue. The preferred stock is now selling for $68. What is the current yield or cost of the preferred stock?

  Calculate the current earnings per share

Calculate the firms EOQ for the item of inventory and what is the firms total cost based upon the EOQ calculated above - Calculate the current earnings per share

  Study of investment analysis and portfolio management

Study of Investment Analysis and Portfolio Management is a specialised area of study that is aimed at maximising return given a level of risk. The principles of Investment Analysis and Portfolio Management have broadly been applied by large corporate..

  Explain the book value and market value of the firm

What are the book value and market value of the firm, and 2) if there are 2 million shares of stock in the new corporation what would be the price per share and the book value per share.

  Zero coupon bonds have more reinvestment risk

10-year, zero coupon bonds have more reinvestment risk than 10-year, 10% coupon bonds. A 10-year, 10% coupon bond has less reinvestment risk than a 10-year, 5% coupon bond (assuming all else equal). The price of a 20-year, 10% bond is less sensitive ..

  Which of the following is a reason why an expertise in

1 which of the following is a reason why an expertise in international finance is important?a because the process of

  How much can you withdraw from retirement plans

If you plan on making 20 equal withdrawals at the beginning of each year from the account (with the first withdrawal made at the end of the 30th year-the first year of retirement), how much can you withdraw?

  What required rate of return has market placed on this stock

The last dividend per share on Stock K was $1.25. The dividend next year (Year 1) is expected to be 4% higher. Then the dividend is expected to continue to grow at the rate of 4% per year forever. If the stock is priced today at $16.25 per share, wha..

  While the operating budget process is underway

While the operating budget process is underway in June, the capital budget process must also begin. Describe what should be happening in the capital budget process during June of each year.

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