Illustrate what real rate of return will you earn

Assignment Help Macroeconomics
Reference no: EM1330072

Description of Real rate of return

Suppose that you buy a 1-year maturity bond for $1,000 that will pay you back $1,000 plus a coupon payment of $60 at teh end of the year. What real rate of return will you earn if the inflation rate is

1. 2 percent
2. 4 percent
3. 6 percent
4. 8 percent

 

Reference no: EM1330072

Questions Cloud

Describe the health insurance benefits : Health Insurance Benefits and Human Resource Management - Show how an organization's compensation plan (specifically health insurance benefits) might impact an organization's strategic goal setting process.
Mass customization : How does mass customization help firms combat encroaching commoditization?
Explain business ethics : Explain Business Ethics and what environment factors would impact strategic decision making in large versus small multinational companies
Calculate the mortgage payments : A program written in Java (without a graphical user interface) that will compute and display the monthly payment amount to fully amortize a $200,000.00 loan over a 30 year term at 5.75? interest.
Illustrate what real rate of return will you earn : Illustrate what real rate of return will you earn if the inflation rate.
Describe the art of negotiation in a global situation : Describe the art of negotiation in a global situation. What are the stages of negotiation and what role do styles of negotiation play?
Describe the call center training scenario : What methods would you use in designing practice cases? Explain your reasoning and What would you include in the practice cases
Illustrate the impact of inflation on consumption aggregate : Illustrate the impact of inflation on consumption, aggregate demand.
The first four standards in hpt : The first four standards in HPT are RSVP - Results, Systematic approach, Value-added, Partnership. Compare software implementation processes with this approach.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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