Total real rate of return on investment

Assignment Help Finance Basics
Reference no: EM131041180

Suppose you bought a 4.6% annually coupon bond one year ago for $930. The bond sells for $955 today.

A) assuming $1000 face value, what was your total dollar return in this investment over the past year

B) what was your total nominal rate of return on this investment over the past year

C) if the inflation rate last year was 3%, what was your total real rate of return on this investment?

Reference no: EM131041180

Questions Cloud

Shares of alligator common stock : The Alligator Lock Company is planning a two-for-one stock split. You own 5,000 shares of Alligator's common stock that is currently selling for $120 a share. What is the value of your Alligator stock now, and what will it be after the split?
How each function is important in the assimilation process : The employment interview is an important tool in the business world today. Describe the three basic functions that the employment interview serves and how each function is important in the assimilation process.
Purchase of a new machine costing : Firm is contemplating the purchase of a new machine costing $570,000. The machine will be depreciated straight line to zero over its five-year life.
Determining the effective interest rate : The insurance company will pay out the proceeds of this policy to you in 10 equal payments, where the first payment to be made one year after the policy matures. If the effective interest rate remains at 8.16 percent, how much will you receive dur..
Total real rate of return on investment : Suppose you bought a 4.6% annually coupon bond one year ago for $930. The bond sells for $955 today. A) assuming $1000 face value, what was your total dollar return in this investment over the past year
Detailed explanation of proposed solution : Description of current problem, issue, or deficit requiring a change. Hint: If you are proposing a change in current policy, process, or procedure(s) when delivering patient care, describe first the current policy, process, or procedure as a basel..
Shares of the sugarcooky corp : Randal Flapjack is a retired short-order cook living on a fixed income in the state of Utopia where all financial markets are perfectly efficient. Randal has 20,000 shares of the Sugarcooky Corp.,which pays an annualized dividend of $1.00 per shar..
Net federal estate tax payable : If the amount is over $1,500,000 but not over $2,000,000 the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on these facts, the net federal estate tax payable is
What is your process for assessing the risks : You have scheduled a risk assessment meeting for later this week. Create a pre read document for the meeting participants that will walk them through how you will run the meeting and what they should prepare in advance.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the stocks current price

A corporation currently pays a dividend of $2 per share, D0=$2. It is estimated that the corporation's dividend will grow at a rate of 20 percent per year for the next 2 years,

  Assume interest rate of 6 a company receives cash flows of

assume interest rate of 6. a company receives cash flows of 104875 at the end of years 4 5 6 7 and 8 and cash flows of

  Foreign exchange and investment decisions

There has been huge growth in foreign exchange investment of average investors, for example, stay at home or working from home moms. Describe 3 to 5 major factors which require to be considered in making foreign exchange (currency) investment deci..

  Are us ethical standards applicable worldwide explain your

1. what are the international and regional institutions that comprise the global monetary and financial system? what

  What is the beta for stock a

What is the beta for stock A?What is the normal return for stock A?

  How does one determine an optimal equity split for a deal

What issues must be considered? Do not cut and paste from textbooks. Do some actual research from graduate papers, and cite them.Give an example of an actual deal.

  Sosa corporation issued bonds with a face value of 400000

sosa corporation issued bonds with a face value of 400000 and a contractual rate of interest of 6 at 99 on july 1. the

  Please submit your final exam answers through your

please submit your final exam answers through your assignments folder. create a word document that contains your

  Find the return on a value-weighted index

Find the return on a value-weighted index of Intel and Motorola from January 1, 2005 to January 1, 2006.

  The firm last paid a dividend of 356 if you require a rate

zero growth knight supply corp. has not grown for the past several years and management expects this lack of growth to

  Determine how many batches of each type of candy

Determine how many batches of each type of candy the confectionery should make assuming that the profit per pound box is $0.50 on fudge, $0.40 on chocolate crèmes and $0.45 onpralines.

  Computation of cost of capital

Computation of cost of capital and compute the cost of capital of investing in a project with a beta of 0.8

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