What would be your total real return on the investment

Assignment Help Financial Management

Reference no: EM132014656

You bought one of Mastadon Manufacturing Co.’s 6.6 percent coupon bonds one year ago for $1,056. These bonds make annual payments, mature eleven 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 4.5 percent. If the inflation rate was 3.2 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.)

Reference no: EM132014656

Questions Cloud

What do you think the ex-dividend price will be : Tattler sells for $67 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?

The cycle had been seized by law enforcement officers : When asked how long the cycle had been in storage, Indyprovided a date that fell after the cycle had been seized by law enforcement officers.

Explain the meaning of capital structure-cost of capital : Explain the meaning of capital structure, cost of capital, and weighted average cost of capital (WACC).

What about the npv rule : Find the monthly rate that will yield an effective annual rate of 15%. What about the NPV rule?

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

Calculate the standard deviation of the bond return : What is stand-alone risk? Use the scenario data to calculate the standard deviation of the bond’s return for the next year.

Ethereum crypto currency network and block chain technology : Select or device a financial use case for the Ethereum crypto currency network and its block chain technology.

What is the value of stock given required rate of return : Courtesy Bancorp issued perpetual preferred stock a few years ago. What is the value of the stock given your required rate of return?

What is the profitability index of the project : What is the payback period of the project? What is the profitability index of the project? How sensitive is the NPV to changes in the quantity sold?

User Account

All Pages