What would be your total real return on investment

Assignment Help Financial Management

Reference no: EM131986144

You bought one of Mastadon Manufacturing Co.’s 8.6 percent coupon bonds one year ago for $1,046. These bonds make annual payments, mature fifteen years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 8 percent. If the inflation rate was 3.0 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total real return %

Reference no: EM131986144

Questions Cloud

How much calcium do you need to help prevent osteoporosis : How much calcium do you need to help prevent osteoporosis? What is the role of vitamin D as far as calcium absorption?

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million.

What is the projects average accounting return : what is the projects average accounting return?

Critically analyse and use complex decision making : ITECH7410 - Software Engineering Methodologies - Formal Specification of a Library System Overview - opportunity to apply the knowledge and skills developed

What would be your total real return on investment : If the inflation rate was 3.0 percent over the past year, what would be your total real return on the investment?

Calculate the mirr of project using reinvestment approach : Calculate the MIRR of the project using the discounting approach. Calculate the MIRR of the project using the reinvestment approach.

Type of exercise for prevention of osteoporosis : Now what is the best type of exercise for the prevention of osteoporosis?

Cash flow stream if the quoted interest rate : What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%,

Uses of technology across the health care industry : Analyze the types of technology trends you researched. Telemedicine and electronic health records

User Account

All Pages