What was total real return on investment

Assignment Help Financial Management

Reference no: EM132018854

You bought one of Great White Shark Repellant CO’s 7 percent coupon bonds one year ago for $1,045.

These bonds make annual payments and mature 12 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent.

If the inflation rate was 3.2 percent over the past year, what was your total real return on investment?

Reference no: EM132018854

Questions Cloud

Possibility of entering golf ball manufacturing business : The GreenBall Inc. is evaluating the possibility of entering the golf ball manufacturing business.

Draw the graph of the efficient frontier in case : Draw the graph of the efficient frontier in this case

What is current value of one share of this stock : The Onboard Co. is a new firm in rapidly growing industry. What is the current value of one share of this stock if the required rate of return is 11.2 percent?

Proceed with two new products : A company needs to decide if it will proceed with two new products. Should the company move forward with one, both or neither of the two new products?

What was total real return on investment : If the inflation rate was 3.2 percent over the past year, what was your total real return on investment?

What are arithmetic and geometric returns for the stock : What are the arithmetic and geometric returns for the stock?

Solve for the firm present value of the tax shield : Solve for the firm’s present value of the tax shield

Add leverage and maintain interest coverage ratio : What will be Boogle’s value if you add leverage and maintain an interest coverage ratio of 10%?

Calculate present value of firm tax saving due to new debt : Calculate the present value of the firm’s tax saving due to new debt.

User Account

All Pages