What is the real rate of return for us long-term bond

Assignment Help Financial Management
Reference no: EM131445306

Assume that the inflation rate during the last year was 2.03 percent.US long-term had the nominal rate of return of 3.77 percent. What is the real rate of return for a US long-term bond? Round to two decimal places

Reference no: EM131445306

Questions Cloud

Successful manufacturer of camping equipment : Kampfire, Inc., a very successful manufacturer of camping equipment, is considering going public next month to raise funds to help finance the company’s future growth. Securities can be traded on physical exchanges or in the over-the-counter market. ..
Determine lears earnings after taxes under financing plan : Lear Inc. has $920,000 in current assets, $410,000 of which are considered permanent current assets. In addition, the firm has $720,000 invested in fixed assets. Lear wishes to finance all fixed assets and half of its permanent current assets with lo..
What types of business forecasting scenarios : What types of business forecasting scenarios do you think ARIMA would work particularly well? Are there any advantages of using ARIMA over the other forecasting methods? Explain.
Procurement and vending : Procurement and Vending question: Describe your negotiation style. How do you think you could be a more effective negotiator?  Reference needs to be included.
What is the real rate of return for us long-term bond : Assume that the inflation rate during the last year was 2.03 percent.US long-term had the nominal rate of return of 3.77 percent. What is the real rate of return for a US long-term bond?
What is the present value of the cash flow pattern : You have been offered the opportunity to invest in a project that will pay $ 2,714 per year at the end of year's four and five.If appropriate discount rate is 12.8 present per year, What is the present value of the cash flow pattern?
Price and earnings ratio : PRICE/EARNINGS RATIO A company has an EPS of $4.50, a book value per share of $43.65, and a market/book ratio of 2.1x. What is its P/E ratio?
Find recent story primary offering in wall street journal : Find a recent story primary offering in the Wall Street Journal. Based on that information in the story, indicate the characteristics of the security sold and the major underwriters. How much new capital did the firm derive from the offering.
Determine the net effect of offering the discount : Zebra company sells $73 million of its products to retailers on creidt terms of net 30. Its average collection period is 55 days. To speed up the collection of receivables the company is considering giving 1.5% cash discounts if customers pay with in..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the company total market value of debt

Jiminy's Cricket Farm issued a 30-year, 8 percent semi-annual bond 7 years ago. The bond currently sells for 88 percent of its face value. The book value of the debt issue is $16 million. The company's tax rate is 34 percent. What is the company's to..

  Percentage of company capital structure consists of debt

Hook Industries capital structure consists solely of deb and common equity. It can issue debt at rd = 11% and its common stock currently pays a $2.00 dividend per share. The stock's price is currently $24.75, its dividend is expected to grow at a con..

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  How much additional debt is required if no new equity

For 2012, the balance sheet of Larsen Lithographics reported current assets of $9,190, net fixed assets of $11,400, current liabilities of $3,300, long-term debt of $2,780, common stock of $10,000 and retained earnings of $4,510. How much additional ..

  Drawbacks of accumulating cash balances

What are the benefits and drawbacks of accumulating cash balances rather than paying dividends and what effects do dividend policy have on this type of decision?

  The dividends are expected to grow-growth rate indefinitely

Could I Industries just paid a dividend of $1.92 per share. The dividends are expected to grow at a 19 percent rate for the next 3 years and then level off to a 6 percent growth rate indefinitely. If the required return is 11 percent, what is the val..

  Business reported the changes in working capital

A house painting business had revenues of $17,600 and expenses of $10,600 last summer. There were no depreciation expenses. However, the business reported the following changes in working capital:

  Using the shortest life planning horizon

When using the shortest life planning horizon (non LCM approach), what issue should you explicitly consider for alternatives whose cash flow profiles extend longer than the shortest life determination of salvage values for truncated cash flows the va..

  Compare and contrast drafts and promissory notes

Compare and Contrast Drafts and Promissory Notes. Be sure to include the identity of the parties on both instruments. In order to make a Draft or a Note an acceptable cash equivalent for commercial transactions, the paper must. Have all of the magica..

  Issued nonconvertible preferred stock with par value

Sweet Pea, Inc. has just issued nonconvertible preferred stock with a par value of $100 and an annual dividend rate of 15.23 percent. The preferred stock is currently selling for $98.11 per share. What rate of return will the investor expect to recei..

  Constant growth versions of the discounted dividend model

When investing in common stocks, market participants aim to purchase stocks that are undervalued. The discounted dividend model (DDM) is one of several approaches to determine if a stock in undervalued or overvalued. Both the zero growth and constant..

  Debt obligation of the issuer

Which of the following investments in NOT a debt obligation of the issuer?

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