You bought one of Rocky Mountain Manufacturing Company's 8.25 percent coupon bonds one year ago for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You bought one of Rocky Mountain Manufacturing Company's 8.25 percent coupon bonds one year ago for $1,048.30. These bonds make annual payments and mature ten years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7.75 percent. If the inflation rate was 4.1 percent over the past year, what would be your total real return on the investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Total real return % You bought one of Rocky Mountain Manufacturing Company's 8.25 percent coupon bonds one year ago for $1,048.30. These bonds make annual payments and mature ten years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7.75 percent. If the inflation rate was 4.1 percent over the past year, what would be your total real return on the investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Total real return %
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The simple truss shown has the following dimensions: H1 = 1.90 in; H2 = 1.60 in; L0=31 in; L2 = 14 in; D1 = 0.76 in; D2 = 0.86 in. Both supporting bars have a depth of 0.5 in. If the maximum...
-
Determine the supersaturation ratio, S, required to permit 0.5-pm-diameter crystals of sucrose (MW = 342 and c = 1,590 kg/m3) to grow if S,L 0.01 J/m2.
-
Given the set of element {a,b,c,d,e, f } stored in a list, show the final state of the list, assuming we use the move-to-front heuristic and access the elements according to the following sequence:...
-
Task: Create a depreciation schedule to monitor your companys investment in fixed assets. a. Your spreadsheet should have the following column headings: Account number (5 digits, valid range from...
-
In 2007 Chirac Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock . Chirac had revenues of $17,500 and expenses other than interest and taxes of $8,400...
-
QS 6-26B (Algo) Estimating inventories-gross profit method LO P4 Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from the...
-
Our target market segment is international students from India aged 18-24, with an average income bracket of $20,000-$30,000. Our aim is to increase and generate leads on the GBC website. we are at...
-
Here is an example of a project preference decision YEARS of Cash Flows Projects 0 1 2 3 4 5 Total Cash Flows U$ (50,000) $13,000 $15,000 $25,000 $15,000 $15,000 $83,000 V$ (330,000) $150,000...
-
In Erphalene ' s Restaurant, fixed costs are 30 percent of sales, and directly variable costs are 25 percent. What percentage of sales should semivariable costs be if the restaurant is to show a 10...
-
Jane is a portfolio manager for ABC Capital.She forecasts that the common stock of XYZ Corp, which ABC intends to buy, and which is now priced at $60, will most probably increase in the near future...
-
Generally how does your organization respond when an employee incurs an occupational injury or illness (from the point that the injury or illness occurred to the point that the individual is able to...
-
When investing, you put $220,000 into a fund that earns 3.95 % p.a. compounded monthly for 22 years and didn't touch it. At the end of the 22 years, how much is the fund worth
-
|A) = (9 2i) Ju1) + 4i u2) lu3) +i lu4) (a) Find the dual vector (A|. (b) Assuming that the Ju;) are an orthonormal basis, determine the represen- tation of |A) as a column vector in this basis....
-
Willingness to pay as a measure of a person's value for a particular good measures the maximum a person would be willing to pay requires that payment actually be made depends on the satisfaction that...
-
Fixed costs a. do not vary with the level of output. b. cannot be avoided in the short run without going out of business. c. do not exist in the long run. d. are characterized by all of the above.
-
The change in total cost that results from the production of one additional unit of output is called a. marginal revenue. b. average variable cost. c. marginal cost. d. average total cost. e. average...
-
Which short-run curve typically declines continuously as output expands? a. Average variable cost b. Average total cost c. Average fixed cost d. Marginal cost e. None of the above
Study smarter with the SolutionInn App