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yuradex [85]
3 years ago
5

If the rate of inflation remains the same at 2% during the 5-year life of a TIPS bond with a coupon of 3%, what would the nomina

l value of the bond be at maturity to the nearest dollar?[A] $1,000[B] $1,060[C] $1,104[D] $1,160
Business
1 answer:
Vaselesa [24]3 years ago
4 0

Answer:

C $1,104

Explanation:

TIPS are the form of bonds which are specially designed for the purpose to protect the investors against the inflation.

The principal value of the bond in case of TIPS is adjusted for yearly inflation.

Based on the above discussion the value of TIPS bond can be calculated using the below formula:

Value of bond at maturity=Principal amount (1+inflation rate)^5

                                         =1,000(1+2%)^5

                                         =1,104

 So the answer is C $1,104

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One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 14.62 pe
aliya0001 [1]

Answer:

3.75%

Explanation:

Purchase price of the stock = $32

Total return on the stock:

= Purchase price of the stock × Total return

= 32 × 14.62%

= $4.6784

Dividend gain on the stock:

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= $32 + $4.6784  - $3.48  - $32

= $1.1984

Dividend yield:

= Dividend gain on the stock ÷ Purchase price of the stock

= $1.1984 ÷ 32

= 3.75%

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2 years ago
Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax
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Answer:

The Income Statement  is-

Sales = $435,000

Costs = 216,000

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I have done this question before in my "Money Management" Dual enrolled class.

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4 0
3 years ago
Historically the stock market goes up when there is bad news on unemployment. The latest statistics show the unemployment rate i
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The Argument target refers to the subject of the discussion in question. The speaker in question is attempting to explain why it would be a good time to buy stocks in the present which concerns the stock market today making it the subject.

The speaker does this by calling into evidence, the correlations between variables in the past and showing that with one variable ( high unemployment) currently in effect, the other variable (increasing stock prices) which it correlates with therefore has a chance of happening in the present.

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What are the four qualities of good leadership?
astra-53 [7]
Honesty , Trustworthy , Determined & Passionate .
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Yes, the offer was accepted before Barney had notice of the revocation.

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Fred can revoke his offer at any time before acceptance (2 March), because there is no consideration to keep the offer open. However, Barney has called Fred to accept the offer, before receiving the revocation by mail which Barney has received on March 3

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