What is the bond real rate of return today

Assignment Help Finance Basics
Reference no: EM13282765

You just learned that a blue chip company will issue a bond with a maturity of 30 years. The bond appears to be a good deal because it yields 3.5 percent. Assuming that the infaltion rate stays at 3 percent, what is the bond's real rate of return today?

Reference no: EM13282765

Questions Cloud

How much was your investment worth prior to the split : Assuming Widget's Extrmeme's management decides to split the stock two for one, how many shares would you own after the split?
Calculate the bond approximate yield to maturity : An investor is considering purchasing a bond with a 3.50 percent coupon interest rate, a par value of $1,000, and a market price of $917.50. The bond will mature in 9 years. Based on this information, answer the following questions.
Determine what is the highest chopper frequency possible : A chopper controlled electric train is powered from a 1500 VDE supply. The power semi- conductor switch element hasaminimum effectice ON time of 40 Ms. during starting and slowspeed running, the output of the chopper has to go as low as 15 V.
Explain synthesized from phenol and acetone with hcl : Bisphenol A is an important component of many polymers, including polycarbonates, polyuethanes, and epoxy resins. It is synthesized from phenol and acetone with HCl as a catalyst. Propose a mechanism.
What is the bond real rate of return today : You just learned that a blue chip company will issue a bond with a maturity of 30 years. The bond appears to be a good deal because it yields 3.5 percent. Assuming that the infaltion rate stays at 3 percent, what is the bond's real rate of return ..
Which way is saturn rotating and why : A spectral line from the left side of Saturn's rings, as you see them, Which way (direction) is Saturn rotating, and why
Do you think this fusion was appropriate in the case : Although Gandhi was a devoted Hindu, he had some criticisms of certain aspects of traditional Hindu culture. What were they? Discuss three Hindu and Jain beliefs that were very important to Gandhi’s work. The title of the article is “The Fusion of Re..
Effects of the angiotensin : Another way to think of this is that you are required to provide a "translation" of the scientific language in the abstract into regular plain English. Make sure that you choose a research article NOT a Review Article.
What is the minimum time needed before it can come to rest : A jet plane lands with a speed of 114 m/s and can accelerate at a maximum rate of ?4.20 m/s2 as it comes to rest. what is the minimum time needed before it can come to rest

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