What was your total real return on investment

Assignment Help Financial Management
Reference no: EM13766397

You bought one of Great White Shark Repellant Co.’s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments and mature 15 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent.

If the inflation rate was 2.4 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Total real return               %

Reference no: EM13766397

Questions Cloud

Identify a state or federal case involving termination : Identify a state or federal case involving termination done in bad faith. What were the facts and findings of the case
Sell its inventory and then collect the payment on the sale : Syed's Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200 and cost of goods sold of $3,400. How long does it take Syed's to both sell its inventory and then collect the payment on the sale?
Important issues in archaeology : Why is context so important in archaeology? If someone steals an artifact from an unexcavated archaeological site.
Calculate the expected price of the stock : A stock you are interested in paid a dividend of $1 this morning. If you buy the stock today, you will get the first dividend after one year. The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a ..
What was your total real return on investment : You bought one of Great White Shark Repellant Co.’s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments and mature 15 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is..
What are the ramifications of given situation : You are managing a project that is just barely within budget. You are confused because you know that your bid was high enough to produce a nice profit. What are the ramifications of this situation? What steps do you think you should take to rectify..
Discus healthcare research impact on evidence based practice : Discuss the Healthcare research's impact on evidence based practice and Key Components of research studies impacting rigor, validity, and ethical considerations.
Kin selection and kin recognition rules be useful : How might you expect foraging patterns to differ between these two lizard populations with respect to the time spent in a given patch - How might both kin selection and kin recognition rules be useful in understanding cases of "adoption" in animals?
Calculate the net present value of the new purchase option : David Co. produces all-terrain vehicles (ATVs). The once successful line is no longer selling well, so the company is considering production of a new improved 4 passenger ATV. This can be done by buying needed production equipment. The after tax cash..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the probability of a booming economy occurring

A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is the probability of a booming economy occurring if these are the only two economic states?

  Time value of money and retirement funding

Starting with your current situation, what must you do to ensure an annual retirement income of $75,000 starting at age 65?  Make sure that you submit time value of money calculations that support the conclusions. Do you think that there is a “retire..

  Assuming the interest of the only finance charge

Assuming the interest of the only finance charge, how much interest would be paid on a $5000 investment loan to be repaid in 12 in 36 monthly instalments of $166.10? What is the APR on this loan?

  Regarding the appropriate tax rate to be used in the WACC

Which of the following is a true regarding the appropriate tax rate to be used in the WACC?

  What is the equipments after-tax salvage value

Kennedy Air Services is now in the final year of a project. The equipment originally cost $34 million, of which 80% has been depreciated. Kennedy can sell the used equipment today for $8.5 million, and its tax rate is 35%. What is the equipment's aft..

  Interest is credited at an annual effective rate

The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an effective annual interest rate of 5%. The balance at the end of seven years is paid to the beneficiary in 120 equal monthly payments of X, with..

  Key emerging performance management

Review current research published in recent (within the past 5 years) academic journal articles focusing on emergent performance management topics. These might include topics related to sustainability, ethics or any efforts to spark innovation in ..

  Landscaping service but lee refused to pay

Clarkson and Lee did not have a contract, but Clarkson completed extensive landscaping in Lee’s yard by mistake while Lee was away on vacation. Clarkson sent Lee a bill for the landscaping service but Lee refused to pay. Determine the likely result i..

  Choose one 1 of the following ceos for this assignment

choose one 1 of the following ceos for this assignment larry page google tony hsieh zappos gary kelly southwest

  What is the expected return on the portfolio

You own a portfolio that is 32 percent invested in Stock X, 20 percent in Stock Y, and 48 percent in Stock Z. The expected returns on these three stocks are 6 percent, 19 percent, and 15 percent, respectively. What is the expected return on the portf..

  Large american airlines passenger jet crashes

A large American Airlines passenger jet crashes and news reaches the stock market during trading hours. Information is limited at first and then becomes more detailed. How would expect the price of American Airlines to move during this period?

  Information about elkridge sporting goods

Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2014. On that date the firm had cash and marketable securities of $25,135, accounts receivable of $43,758, inventory of $166,700, net fixed as..

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