Goal of earning a real rate of return

Assignment Help Financial Management

Reference no: EM13894233

You have a goal of earning a real rate of return of 10.3 percent on your investments. What nominal rate will you have to earn if the inflation rate is 6.4 percent?

a) 3.67 percent

b) 17.45 percent

c) 7.77 percent

d) 17.36 percent

Reference no: EM13894233

Questions Cloud

A class that extends exception : Write a class that extends Exception and is called Too Many Occupants Exception. Have the Vehicle class matador for number of occupants throw such an exception if the number Of Occupants would exceed the maximum number of occupants for the vehicle

Restore participating and self-support to free enterprise : 1. In reading "Rewarding Work: How to Restore Participating and Self-Support to Free Enterprise" a plan to help the working poor speaks about different options. What are some market incentives that includes one of the ten principles of economics t..

Define and explain activity-based costing : Define and explain activity-based costing

According to the basic liquidity ratio : Use the following financial information about Danni Flinn: she earns $625 in wages from her job at the bookstore every 2 weeks. her parents give her $400 every month. she averages $75 in income each month by dog-sitting. Danni's current assets are? D..

Goal of earning a real rate of return : You have a goal of earning a real rate of return of 10.3 percent on your investments. What nominal rate will you have to earn if the inflation rate is 6.4 percent?

Using economic order quantity model in placing the orders : Cheesburger and Taco Company purchases 6,441 boxes of cheese each year. It costs $27 to place and ship each order and $9.92 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What was your real return : Say you own an asset that had a total return last year of 11.3 percent. If the inflation rate last year was 6.1 percent, what was your real return?

The bonds make semiannual payments and have par value : Sqeekers Co. issued 10-year bonds a year ago at a coupon rate of 8.8 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 7.1 percent, what is the current bond price?

Bonds on the market making annual payments : Essary Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $950. At this price, the bonds yield 6 percent. What must the coupon rate be on the bonds?

User Account

All Pages