subject
Business, 01.10.2019 16:10 oct316mb

Suppose that you buy a tips (inflation-indexed) bond with a 1-year maturity and a coupon of 7% paid annually. assume you buy the bond at its face value of $1,000, and the inflation rate is 8%.

(a) what will be your cash flow at the end of the year?
(b) what will be your real return?
(c) what will be your nominal return?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 10:20
The following information is for alex corp: product x: revenue $12.00 variable cost $4.50 product y: revenue $44.50 variable cost $9.50 total fixed costs $75,000 what is the breakeven point assuming the sales mix consists of two units of product x and one unit of product y?
Answers: 3
question
Business, 22.06.2019 10:30
What are the positive environmental trends seen today? many industries are taking measures to reduce the use( _gold,carbon dioxide,ozone_) of -depleting substances and are turning to(_scarce,renewable,non-recyclable_) energy sources though they may seem expensive. choose one of those 3 option to fill the
Answers: 3
question
Business, 22.06.2019 12:30
Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?
Answers: 1
question
Business, 22.06.2019 22:20
Mattress wholesalers, inc. is constantly trying to reduce inventory in its supply chain. last year, cogs was $7.47 million and inventory was $1.47 million. this year, cogs is $8.65 million and inventory investment is $1.64 million.a) what was its weeks of supply last ) what is its weeks of supply this ) is mattress wholesalers making progress in its inventory reduction effort? since the number of weeks that cover the supply has mattress wholesalers is making in its inventory reduction effort.
Answers: 3
You know the right answer?
Suppose that you buy a tips (inflation-indexed) bond with a 1-year maturity and a coupon of 7% paid...
Questions
question
Mathematics, 22.06.2019 18:00
question
Biology, 22.06.2019 18:00
Questions on the website: 13722363