Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.00%. Assume annual coupon payments. Time Inflation in
Year Just Ended Par Value Coupon Payment + Principal Repayment = Total Payment
0 $ 1,000.00
1 2.0% $ 1,020.00 $ 40.80 0 $ 40.80
2 1.0 % $ 1,030.20 $ 41.21 0 $ 41.21
3 3.0 % $ 1,061.11 $ 42.44 $ 1,061.11 $ 1,103.55
What is the nominal rate of return on the TIPS bond in the first year?
a. 3.00%
b. 4.08%
c. 6.08%
d. 6.00%

Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection