Approximate and the exact real rate of interest

Assignment Help Financial Management
Reference no: EM131492098

If Treasury bills are currently paying 6.65 percent and the inflation rate is 3 percent, what is the approximate and the exact real rate of interest? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131492098

Questions Cloud

Estimate the expected return on thorndike oil equity : Estimate the expected return on TO’s equity. Issue $55 million immediately in debt and maintain its level in perpetuity.
Occupations of target market : Your marketing department is currently researching the size, density, location, age, and occupations of your target market. What is this environment.
Combination of tangible and intangible items : A company chooses that combination of tangible and intangible items, experiences, and outcomes designed to outperform competitors and with the customers.
What is the function of a network server : List five factors to be considered when configuring a LAN.
Approximate and the exact real rate of interest : what is the approximate and the exact real rate of interest?
Analyze and explain how you would use dns in your plan : Analyze and explain how you would use DNS in your plan. Compose a two-paragraph executive summary highlighting the main points of your plan.
Product has low brand loyalty in its category : Your product has low brand loyalty in its category; brand choice is often made by the consumer in the store, often at the very moment of purchase.
What legislation applies to employment in australia : What legislation applies to employment in Australia? What is the distinction between an employee and independent contractor
List three advantages of the client-server network : What is the most efficient way for a network administrator to add a computer running Windows XP?

Reviews

Write a Review

Financial Management Questions & Answers

  Nonconstant growth and quarterly dividends

Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.70 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.8 percent, forever. The appropriate rate of return on the stock is..

  Purchase bond with coupon rate

You purchase a bond with a coupon rate of 2.67 percent and a clean price of $1099.02. If the next semiannual coupon payment is due in 2 months, what is the invoice price?

  Leverage ratio compared to the start of the year

A company has made a profit for the year. Which of the following company actions will have no effect on its Leverage Ratio compared to the start of the year?

  Down payment and the rest of the boat will be financed

You would like to purchase a boat that costs $27,325. You have $2,500 for a down payment and the rest of the boat will be financed with a 48 month car loan. The APR on the loan is 4.5%. Construct a loan amortization table in Excel. Display answer in ..

  Capital structure-what is its WACC

Reactive Industries has the following capital structure. Its corporate tax rate is 30%. what is its WACC?

  Examine operating free cash flow

How does this technique compare to discounted cash flow valuation when based on either net income or dividends?-

  Fixed rate mortgage to buy new home

You need a 30-year fixed rate mortgage to buy a new home for $290,000. Your mortgage bank will lend you the money at a 5.85 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,300, so you offer to pay off any rema..

  Determine lajolla securities profit on the offering

Determine LaJolla Securities' profit on the offering if, immediately after the offering began, the secondary market price of each share was given.

  Cumulative preferred stock that pays quarterly dividends

You own one share of a cumulative preferred stock that pays quarterly dividends. The firm has recently suffered some financial setbacks and has failed to pay the last two dividends. However, new funding has been arranged and the firm intends to resto..

  Identify the internal and external stakeholders

Consider an organization with which you are familiar, and identify the internal and external stakeholders. Are there stakeholder groups that are not included that should be? How would the organization need to change to incorporate those omitted group..

  Use of truck will require increase-spare parts inventory

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $70,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $19,000. Use of the truck wil..

  Which company appears to have the better net profit margin

Which company appears to have the better net profit margin?- Which company appears to have the best return on assets?

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