Great white shark repellant co

Assignment Help Finance Basics
Reference no: EM132557299

You bought one of Great White Shark Repellant Co.'s 8 percent coupon bonds one year ago for $1,059. These bonds make annual payments and mature 10 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent. The bonds have a par value of $1,000.

If the inflation rate was 4.8 percent over the past year, what was your total real return on investment?

Total Real Return: ___?___%

Reference no: EM132557299

Questions Cloud

What was Carter weighted average unit contribution margin : Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks, What was Carter weighted average unit contribution margin
What is gross pay per pay period : Katie Hansen receives a yearly salary of $84 350. She is paid monthly, and her regular work week is 39 hours.
Compare salary and benefit packages using given information : Compare and contrast salary and benefit packages of at least three comparable organizations in the same industry. Examine what 21st-century employees consider.
Calculate the value of a bond that matures : Calculate the value of a bond that matures in 15 years and has a $ 1,000 par value. The annual coupon interest rate
Great white shark repellant co : You bought one of Great White Shark Repellant Co.'s 8 percent coupon bonds one year ago for $1,059. These bonds make annual
How much was the cash payment : If the invoice was paid in cash, how much was the cash payment?
Discuss your learning style in brief : Enhancing employees' knowledge through training and development is crucial in today's marketplace. Employees who receive training will improve their skills.
Cost of goods sold for the company : Holliman Corp. has current liabilities of $404,000, a quick ratio of 1.20, inventory turnover of 4.00, and a current ratio of 3.30.
What is the company''s cost of common equity : The risk free return is 3% and the market return is 7%. What is the company's cost of common equity?

Reviews

Write a Review

Finance Basics Questions & Answers

  A successful alumnus gives state university 2 million to

a successful alumnus gives state university 2 million to establish an endowed scholarship fund. if the university can

  Determine the unknown lump sum amount

Using an interest rate of7.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.

  What social and economic conditions support

(a) What social and economic conditions support and encourage healthy choices? (b) What social and economic structures affect health that have nothing to do with individual choices?

  How much did the bank pay sue for the note

Peter buys an item from Sue and signs a note to pay $300 in 10months. Then, 1 month(s) before the note comes due, Sue sells thenote to a bank which discounts the note based on 12.5% simpleinterest. How much did the bank pay Sue for the note?

  Determine the net after-tax unrealized gain or loss

Determine the net after-tax unrealized gain or loss from holding the Lambert Acres com- mon stock for 2006 and 2007. What is the balance of Accumulated Other Comprehensive Income or Loss for December 31, 2006?

  What is the future value on the day of the last deposit

What is the future value on the day of the last deposit of 25 annual deposits of $750 per year (first deposit to be made today) given an interest rate of 5.5%

  What is the price of the option

What is the price of the option? Use a two-state model with one-month steps. (Do not round intermediate calculations and round your answer to 2 decimal places,

  Compare the performance of a given set of portfolios

Lets extend the discussion by examining the practical implications of these concepts. Under what circumstances would it make sense to use the Treynor measure to compare the performance of a given set of portfolios?

  How much would a municipal bond have to pay to be equivalent

How much would a municipal bond have to pay to be equivalent to this on an after-tax basis if you are in the 28 percent tax bracket?

  What is the seniority risk premium on american common stock

If investors in the common stock of American Airlines require a 16 percent rate of return, what is the seniority risk premium on American's common stock?

  What projects appear to be located on the efficient frontier

In other words, any project that has a smaller expected rate of return for an equivalent, or higher, risk estimate cannot be on the efficient frontier.

  What is the standard deviation of an efficient portfolio

What is the standard deviation of an efficient portfolio with a 16 percent expected return?

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