What is the nominal rate of return on these bonds

Assignment Help Financial Management
Reference no: EM131581571

The outstanding bonds of Frank's Welding provide a real rate of return of 2.87 percent. The current rate of inflation is 4.64 percent. What is the nominal rate of return on these bonds?

A. 7.33 percent

B. 7.46 percent

C. 7.51 percent

D. 7.64 percent

E. 7.71 percent

Reference no: EM131581571

Questions Cloud

When new asset is being added to that portfolio : Why is the correlation coefficient important when examining the risk of a portfolio when a new asset is being added to that portfolio?
What provision of texas law it affected : What provision of Texas law it affected, Which legislative session it was from
Calculating liquidity ratios : SDJ, Inc., has net working capital of $1, 965, current liabilities of $5, 460, and inventory of $2, 170. What is the current ratio? What is the quick ratio?
A clients social history can be a valuable tool : A client's social history can be a valuable tool when working with clients and setting goals. Completing a social history form or documenting.
What is the nominal rate of return on these bonds : The outstanding bonds of Frank's Welding provide a real rate of return of 2.87 percent. What is the nominal rate of return on these bonds?
Writing-outline energy pathways : Provide Three examples of sporting events, or fitness activities, with which you have been involved. Describe what energy pathway.
Define decisions impact our criminal court system : what do you see as the positive and/or negative aspects of decriminalization? How do such decisions impact our criminal court system
Describe type of business entity that is best for business : Identify and describe the type of business entity that is best for your business. Defend your choice of business entity.
Writing-sports dietary supplements : Review three dietary supplements you find at home or in the store. Describe what you find on the label in terms of content and claims.

Reviews

Write a Review

Financial Management Questions & Answers

  Differences in long-term debt financing-long-term leasing

What are the differences between long-term debt financing and long-term leasing. Under what circumstances would you choose between the two if put in a position to do so? Give an example.

  Retirement plan have just started your first job

Assume that you have 40 years until retirement and have just started your first job. Once you retire, you anticipate that you will live for 30 additional years. Assume that you will require $100,000 per year to support yourself in retirement. How muc..

  An indirect cost of financial distress

Which of the following is an indirect cost of financial distress?

  Consider the cost alternatives

Consider the following cost alternatives with 10 year useful lives. The company has a MARR = 15%. Using suitable Excel functions, perform an incremental IRR analysis to determine the best alternative. Clearly lay out each step of the analysis and its..

  Calculate the coefficient of variation of the risk-return

Calculate the coefficient of variation of the risk-return relationship of the bond market (Use the above Tables) during each decade since 1950.

  What are the forecast for outstanding receivables

A health system has forecast net patient revenue in the first 3 months of the year as follows (figures in millions): January, $200; February, $140; March, $200. 70% of services are usually paid for in the month that they take place, 20% in the follow..

  Assuming your indifferent to cash versus credit

A cash strapped young professional offers to buy your car with four, equal annual payments of 3000, beginning 2 years from today. Assuming your indifferent to cash versus credit, that you can invest at 10%, and that you want to recieve 9,000 for the ..

  Discounted payback period for liskls comedy club

calculate the discounted payback period for LISKLs comedy club

  How many rights will dmz grant to its existing shareholders

The firm Davis & Martin and Zanders, Inc. (DMZ) has just announced that it will issue 10 million shares of common stock through a rights issue at a subscription price of $20. Before the announcement, DMZ shares were trading at $26, and there were 50 ..

  What is the price of these three bonds in dollars

What is the price of these three bonds in dollars?

  Public company sends to the markets

What signals do you think a public company sends to the markets and it's existing investor base when it has a secondary stock offering?

  What is the rate of return on the stock

Investors expect the market rate of return this year to be 10%. A stock with a beta of 1.7 has an expected rate of return of 15%. If the market return this year turns out to be 6%, what is the rate of return on the stock?

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