What is the total return of the tips in dollars

Assignment Help Financial Management
Reference no: EM131978769

Consider a 3.90 percent TIPS with an issue CPI reference of 190.4. The bond is purchased at the beginning of the year (after the interest payment), when the CPI was 198.3. For the interest payment in the middle of the year, the CPI was 199.9. Now, at the end of the year, the CPI is 204.4 and the interest payment has been made.

What is the total return of the TIPS in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

What is the total return of the TIPS in percentage? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131978769

Questions Cloud

What was? taylor internal rate of return? on investment : What was? Taylor's internal rate of return? (IRR) on this? investment?
What is the amount of the net fixed assets : Tenet Manufacturing has net working capital of $11,100, current assets of $21,200, What is the amount of the net fixed assets?
What is the effective rate on bank loan : What is the effective rate on the bank loan? Should Harper borrow the money to take the discount?
What are the advantages of having a centralised database : HC1041 IT for Business - Impact of IT on Business - What are the advantages and disadvantages of the new POS system - What are the advantages
What is the total return of the tips in dollars : Consider a 3.90 percent TIPS with an issue CPI reference of 190.4. What is the total return of the TIPS in dollars?
Stock valuation-what is the current share price : Stock Valuation, Bayou Okra Farms just paid a dividend of $2.65 on its stock. What is the current share price?
Describe the five supporting documents : List and describe the five supporting documents that are typically required when applying for a loan.
What is their primary EPS : They have also issued 50,000 warrants that allow holders to buy stock for $25 per share. The tax rate is 25%. What is their primary EPS?
What is the initial weighted average cost of capital : What is the initial weighted average cost of capital? What will the marginal cost of capital be immediately after that point?

Reviews

Write a Review

Financial Management Questions & Answers

  Source of cash flow from investing activities

Which of the following is a source of cash flow from investing activities? a decrease in accounts receivable an increase in accounts payable the sale of a 60-story office building in New York City the sale of new shares of common stock the purchase o..

  Segmented market faces in regards to its access to capital

What are the most common challenges a firm resident in a segmented market faces in regards to its access to capital?

  Value of growth opportunities

A firm has projected annual earnings per share of $3.90 and a dividend payout ratio of 55%.

  Company needs to issue to raise the desired amount of money

Determine the minimum number of these bonds the company needs to issue to raise the desired amount of money.

  What is yield-to-maturity of this bond

United Air has a 6.75% coupon 20 year bond (par value = 1,000). Assume that coupon payments are semi-annual and that the current price is $965.45. What is the yield-to-maturity of this bond?

  Company that is party to swap will be subject to credit risk

A company that is party to a swap will be subject to credit risk when the swap has--------

  Some mix of long-term debt and common equity

The firm has an equity multiplier of 2.7. The firm’s assets are financed with some mix of long-term debt and common equity. What is the company’s debt ratio?

  What is the expected return of portfolio

What is the expected return of this portfolio?

  Illustrate the break-even point has been achieved

Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that the fixed costs are $97,500. 1. Compute the break-even point in units. 2. Fill in the table (in dollars) to illustrate th..

  Avoid paying the property and mortgage insurance fee

What is it maximum you can probably borrow and avoid paying the property and mortgage insurance fee?

  What will the stock price be in three years

The Jackson Timberlake Wardrobe Co. just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. What ..

  Compute the return the firm should earn given level of risk

Compute the return the firm should earn given its level of risk. Compute the return the firm should earn given its level of risk.

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