Total real return on investment

Assignment Help Financial Management

Reference no: EM131528550

You bought one of Great White Shark Repellant Co.’s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments and mature 15 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent.

If the inflation rate was 2.4 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Total real return %

Reference no: EM131528550

Questions Cloud

What is the current market value of the company debt : What is the current market value of the company’s equity? What is the current market value of the company’s debt?

Issued debt-preferred stock and common stock : Executive Fruit has issued debt, preferred stock and common stock.

Calculate weighted average cost of capital : Calculate the weighted average cost of capital (WACC) given a tax rate of 40%.

Determine the projected net after-tax cash flows : Determine the projected net after-tax cash flows for the investment.

Total real return on investment : If the inflation rate was 2.4 percent over the past year, what was your total real return on investment?

Compute percentage total return : Compute the percentage total return.

Why would a company every use currency swaps : Define currency swap. Why would a company every use currency swaps?

Stock has demonstrated large amount of price movement : Since TI’s stock has demonstrated a large amount of price movement, the stock has a very high beta.” Do you agree with this analysis?

Variance of the company returns over this period : What was the arithmetic average return on the company’s stock over this five - year period? What was the variance of the company’s returns over this period?

User Account

All Pages