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
baherus [9]
3 years ago
6

A bond par value is $1,000 and the coupon rate is 4.3 percent. The bond price was $945.46 at the beginning of the year and $976.

26 at the end of the year. The inflation rate for the year was 2.2 percent. What was the bond's real return for the year
Business
1 answer:
Snezhnost [94]3 years ago
6 0

Answer:

The bond's real return for the year was 5.49%

Explanation:

In order to calculate the bond's real return for the year we would have to calculate the following formula:

bond's real return for the year=(1+Nominal rate of return)/(1+Inflation) -1

According to the given data Inflation=2.2 percent

To calculate the Nominal rate of return we would have to calculate the following:

Nominal rate of return=(Selling price + Interest coupon - Purchase price)/Purchase price

According to the given data:

Selling price=$976.26

Interest coupon=$43

Purchase price=$945.46

Therefore, Nominal rate of return=($976.26 + $43 - $945.46)/ $945.46

Nominal rate of return=7.81%

Therefore, bond's real return for the year= (1+7.81%)/(1+2.2%) -1

bond's real return for the year=5.49%

The bond's real return for the year was 5.49%

You might be interested in
"Craig, the CEO of ShopRite, Inc., has noticed that one of his store locations has consistently through-the-roof sales numbers.
Ymorist [56]

The question is incomplete, here is the complete question.

"Craig, the CEO of ShopRite, Inc., has noticed that one of his store locations has consistently through-the-roof sales numbers. Also, a survey completed by employees revealed that this particular location’s workers showed extremely high levels of motivation and job satisfaction when compared to other locations in the region. Everyone who works there gave high praise to their manager, Jamal. What else did the surveymost likely reveal about Jamal’s employees?"

A) They reported feeling a lot of pressure to exceed sales goals every month.

B) They demonstrated citizenship behaviour such as volunteering work

C) They recorded higher level of stress than stored with lower sales number

D) They loved Jamal but were not especially committed to the company overall.

Answer:

They demonstrated citizenship behaviour such as volunteering work.

Explanation:

Survey can be described as a method that is used to collect data or information about a particular topic that requires a lot of attention.

Survey as a research method can be used to gather data about the different attitude and behaviour exhibited by each employees in an organization. It is used by the management of a company to effectively determine the amount of efforts that each employee is putting in towards the growth and success of the business.

In the scenario described above, the CEO of shopRite Inc has observed through a recent survey conducted that one of his store locations has recorded a high number of sales, this is as a result of the high rate of efficiency put in by the workers to ensure the success of the business.

5 0
3 years ago
When using _____, the seller pays all or part of the actual shipment charges and does not pass them on to the buyer.
riadik2000 [5.3K]

Answer:

freight absorption pricing

Explanation:

Freight Absorption Pricing. a pricing method in which the manufacturer bears some or all of the freight costs involved in transporting the goods to the customer.

8 0
4 years ago
Read 2 more answers
Ework Which of the following is not a reason perfect competition is a useful simplification, despite the diversity of market typ
cluponka [151]

There are different kinds of market. The option that is not a reason perfect competition is a useful simplification, despite the diversity of market types we find in the world is that;

  • There are many buyers and many sellers in all types of markets.

<h3>What leads to perfect competition?</h3>

Firms are known to be in perfect competition due to;

  • When many firms produce identical products.
  • When there are plenty buyers available to buy the product, and and also plenty sellers are available to sell the product, etc.

Firms are said to be in perfect competition when a lot of firms produce the same type of products and also these firms can do business in the market without any kind of restrictions.

Learn more about perfect competition from

brainly.com/question/1051446

8 0
2 years ago
Which of the following is a result of over-diversification through acquisition? Select one:
Aleksandr-060686 [28]

Answer:

3) Corporations use acquisition as a substitute for innovation.

Explanation:

The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.

Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.  

6 0
4 years ago
How long does a trademark last? _____
4vir4ik [10]

Answer:

for ten years please thanks

4 0
2 years ago
Read 2 more answers
Other questions:
  • Anika plans to purchase a Janome embroidery machine. The retail price for the Janome 12 model is $10,000 plus $500 for lifetime
    8·1 answer
  • ​"a measure of process​ performance; the ratio of outputs to​ inputs" is the definition of
    13·1 answer
  • For a particular flight from Dulles to SF, USAir uses wide-body jets with a capacity of 430 passengers. It costs the airline $4,
    10·1 answer
  • Which of the following explains how can a yield curve be flat or downward sloping if a maturity risk premium exists? a. Investor
    10·1 answer
  • What market structure predominantly uses product differentiation to attract consumers?
    8·2 answers
  • The bank you own has the following balance sheet: Assets Liabilities Reserves $75 million Deposits $500 million Loans $525 milli
    15·1 answer
  • A bond has $1,000 face value, coupon rate of 5.6%, and yield to maturity (YTM) of 5.8%. It will mature in 15 years and the inter
    15·1 answer
  • Rex and Dena are married and have two children, Michelle (age seven) and Nancy (age five). During 2020, Rex earned a salary of $
    9·1 answer
  • discuss how businesses can use mind mapping and brainstorming to identify new and innovative business opportunities​
    8·1 answer
  • Beginning in 2001, one of the goals of the war in afghanistan was to use force to seize oil supplies. contain the spread of comm
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!