1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nataliya [291]
3 years ago
10

Consider these long-term investment data: • The price of a 10-year $100 par zero-coupon inflation-indexed bond is $84.49. • A re

al-estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%. Compute the annual rate of return on the real (i.e., inflation-indexed) bond.
Business
1 answer:
AleksAgata [21]3 years ago
3 0

Answer:

Annual rate 0.017

Explanation:

Computation of the annual rate on the real bond.

Using this formula

Annual rate = Par Zero coupon inflation index/(1+r) ^Numbers of years =Inflation-indexed bond

Let plug in the formula

Annual rate=100 / (1 + r) ^10 = 84.49

Annual rate= (100 / 84.49)^1 /10 − 1

Annual rate=(1.18357)^0.1-1

Annual rate=1.016-1

Annual rate=0.017

Therefore the annual rate of return will be 0.017

You might be interested in
Smith's electronics originally priced a private-label portable dvd player at $90, and then sold 1,500 units per week. after rais
Mariana [72]
The answer i would say would be $75 
3 0
4 years ago
Pay for knowledge programs:
barxatty [35]

Answer:

D. base an employee's salary on the number of task skills he or she possesses.

Explanation:

Pay for knowledge programme as the name implies, is when an employer renumerate an employee for learning or developing new skills/task on the job.

If an employee develop new skills while working and then get renumerated, this will make the employee get himself or herself acquainted with the company. In order words, the employee will go out of his way to improve his efficiency in terms of increase in productivity due to the new task skill gained.

In this reward system, the employer rewards the employee with payment increase for leaning new task and skills on the job which is beyond their regular activity.

4 0
3 years ago
Jamal lost his job as a shipbuilder during 2004. His shipyard never reopened, and so his very specialized skills are no longer i
Kipish [7]

Answer:Structural unemployment

Explanation:

6 0
3 years ago
. (Pitman 3.4.9) Suppose we play the following game based on tosses of a fair coin. You pay me $10, and I agree to pay you $n 2
Andrews [41]

Answer:

$6 per game

Explanation:

The probability of getting a head on a toss is given as 0.5 for a fair coin.

Therefore the expected number of times that the coin would be tossed to get the first head would be given as the expected value of the geometric distribution with parameter of p = 0.5. therefore the expected value here would be 1/0.5 = 2

Therefore, we expect to get 22 = 4 dollars but we paid initially $10, therefore in long run we expect to lose $6 per game.

6 0
3 years ago
Read 2 more answers
Which method for evaluating capital investment proposals reduces the present value of cash outflows from the present value of ca
Viktor [21]

Net Present value = Present value of Cash inflows - Present value of Cash outflow is the  method for evaluating capital investment proposals reduces the present value of cash outflows from the present value of cash inflows.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. Net Present value is the result of calculations used to find the current value of a future stream of payments.

Net Present value accounts for the time value of money and can be used to compare the rates of return of different projects, or to compare a projected rate of return with the hurdle rate required to approve an investment.

The time value of money is represented in the Net Present value formula by the discount rate, which might be a hurdle rate for a project based on a company's cost of capital. No matter how the discount rate is determined, a negative Net Present value shows the expected rate of return will fall short of it, meaning the project will not create value.

Learn more about Net Present value here

brainly.com/question/14293955

#SPJ4

6 0
1 year ago
Other questions:
  • What does it mean to have a strong ethic
    5·1 answer
  • In a​ ________, many​ small- and​ medium-sized local companies compete for relatively small shares of the total​ market, so focu
    15·1 answer
  • A Installment Land Contract is an method of financing which is an alternative to mortgage or trust deed financing. In it, the se
    6·1 answer
  • A credit check provided to you by a credit issuer that you can use to access your credit card line of credit is called a :
    9·1 answer
  • California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2021. In preparing its insuran
    11·1 answer
  • The company has an opportunity to sell 40,000 additional units at $12 per unit. The additional sales would not affect its curren
    11·1 answer
  • Typing resources allows managers to make better resource ordering decisions by:
    5·1 answer
  • Burger King is a cash-basis taxpayer but maintains its financial accounting records using full
    14·2 answers
  • Waddle Incorporated manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory
    8·1 answer
  • Hestia (age 17) is claimed as a dependent by her parents, Rhea and Chronus. In 2021, Hestia received $1,150 of interest income f
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!