Total dollar return on investment

Assignment Help Finance Basics
Reference no: EM133061791

Consider a 9.0% coupon bond that you bought one year ago for $930. You observe that the bond sells for $890 today. The bond has $1,000 face value and matures in 10 years.

a. What was your total dollar return on this investment over the past year? (Omit $ sign in your response.)

Total dollar return $

b. What was your total nominal rate of return on this investment over the past year? (Round your answer to 2 decimal places.)

Nominal rate of return %

c. If the inflation rate last year was 4%, what was your total real rate of return on this investment? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Use the Fischer formula in your calculations.)

Real rate of return

Reference no: EM133061791

Questions Cloud

What are the goals of the financial manager : Please help me get unstuck What are the goals of the Financial Manager? Give 3 goals and explain each goal.
What do you have left in your account : In the first quarter, your account lost 10% of its value. What do you have left in your account?
What is the company total book value of debt : The bond currently sells for 91% of its face value. The company's tax rate is 38%. What is the company total book value of debt
Capital structure for financing the expansion : A firm is about to double its assets to serve its rapidly growing market. It must choose between a highly automated production process and a less automated one.
Total dollar return on investment : Consider a 9.0% coupon bond that you bought one year ago for $930. You observe that the bond sells for $890 today. The bond has $1,000 face value and matures in
Define and contrast the terms working capital : 1. Dell Computer Corporation (DELL) has long been recognized for its innovative approach to managing its working capital. Describe how Dell pioneered the manage
Type of dividend distribution policy : What type of dividend distribution policy do you suggest to Canadian companies during the Covid-19 pandemic. Why?
Record the receipt of the bank loan on September : On September 30, 2021, Bramble Corporation received a three-year, 4%, $1,000,000 bank loan. Record the receipt of the bank loan on September 30, 2021
What are the expected returns of the two stocks : 1. Using the data in the table below, calculate the return for investing in Citigroup stock (C) from January 2, 2008, to January 2, 2009, and also from January

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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