What was the total nominal rate of return

Assignment Help Finance Basics
Reference no: EM131732478

Question: Calculating Returns. Suppose you bought a bond with an annual coupon rate of 6.5 percent one year ago for $1,032. The bond sells for $1,020 today.

a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

b. What was your total nominal rate of return on this investment over the past year?

c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment?

Reference no: EM131732478

Questions Cloud

The oral antifungal therapy for a client with onychomycosis : The healthcare provider prescribes oral antifungal therapy for a client with onychomycosis
What was dollar return on the investment : Calculating Dollar Returns. You purchased 250 shares of a particular stock at the beginning of the year at a price of $87.25.
How does criminal profiling differ from racial profiling : How does criminal profiling differ from racial profiling? How is it similar? Compare and contrast the various approaches to criminal profiling.
Discuss glatiramer acetate as it is losing its efficacy : Switch his interferon ß-1a to glatiramer acetate as it is losing its efficacy
What was the total nominal rate of return : Calculating Returns. Suppose you bought a bond with an annual coupon rate of 6.5 percent one year ago for $1,032. The bond sells for $1,020 today.
How would you determine the discount rate to use : How would you determine the Discount Rate to use? Is there a rule of thumb?
Discuss permeate membranes by passive diffusion : What kind of substances can't permeate membranes by passive diffusion, What does "pharmacokinetics" include
Unprecedented nationwide recall on popular product : You are a logistics manager for a large pharmaceutical company and you are faced with an unprecedented nationwide recall on popular product such as Lisinopril.
Attempt to accurately predict the cost of capital : What would you do to attempt to accurately predict the cost of capital?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the values for the four formulas

Calculate the values for the following four formulas:Total Variable Cost = (Number of Workers x Worker's Daily Wage) + Other Variable Costs

  Do share repurchases reverse dilution

Before it found the practice to be too expensive, Microsoft (and a number of other firms) was in the habit of repurchasing some of the shares that it issued.

  Review the literature pertaining to the secm and cmmi tools

Review the literature pertaining to the SECM and CMMI tools and their application. What are the basic objectives of each (how do they differ)? What factors are measured? Briefly describe the steps to be followed in the implementation of each.

  Determine the best financing alternative

The Shelby Gaming Manufacturing Company has experienced a severe cash squeeze andneeds $200,000 over the next 90 days. The company has already pledged.

  Compute amount of share of interest and share of principal

you plan to purchase a 100000 house using a 30- year mortgage obtained from your local credit union. the mortgage rate

  The capital budgeting decision

The Capital Budgeting Decision

  Use of dual distribution channels and multichannel systems

How does the use of dual distribution channels and multichannel systems affect the growth of a business? Please list references used.

  Find present value of shops future profits

A 10-year bond paying 8% yearly coupons pays $1000 at maturity. If the required rate of return on the bond is 7%, then today the bond will sell for;

  A company has just acquired a 50 equity stake in a textile

a company has just acquired a 50 equity stake in a textile manufacturing company for tnd 40 m or eur 20 m as the spot

  What effects have basel accords had on international banks

In what way is the Eurocurrency market different from an internal credit market? What is the LIBOR? What are the Basel Accords? What effects have they had on international banks?

  Potential problems with stock options

Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?

  Calculate the financial ratios for valeo

Calculate the financial ratios for Valeo S.A. financial statements, and then interpret those results against company historical data as well as industry benchmarks:

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