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umka21 [38]
2 years ago
13

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?
Business
1 answer:
Kryger [21]2 years ago
7 0

Answer:

at maturity I will receive 1,155.6

the real return is 7%

the nominal will be 15.56%

Explanation:

As it is indexed it will paid a real rate of 7% adjusted for 8% inflation

1,000(1+r)(1+\delta)=Amount

1,000 x 1.07 x 1.08 = 1,155.6 received at maturity

no know the nominal rate we do:

\frac{Amount}{Principal}-1

\frac{1,155.6}{1,000}-1

nominal = 0.1556 = 15.56%

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Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the no
Marina86 [1]

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

= $100,000 + $56,250

= $156,250

Therefore we have applied the above formulas.

5 0
2 years ago
People-based services are ___________ in today’s world. increasing staying about the same varying from day to day decreasing
ddd [48]

<u>Answer:</u>

<em>People-based services are Increasing in today’s world.</em>

<u>Explanation:</u>

Services in which individuals, <em>instead of hardware or apparatus</em>, assume the significant job in conveyance; for instance, individuals assume the significant job in the <em>conveyance of monetary arranging administrations. </em>

People based services are increasing in today's world as there is need to handle and control the <em>software's and machines</em> that are used to carry out functions.

7 0
3 years ago
Generally, ____ indicate(s) the size of a firm relative to their sector. Group of answer choices sector ratios market share rati
ruslelena [56]

Answer:

b. Market share ratio

Explanation:

When the sizes of firms of a particular sector/market are being compared, a common basis for comparison is on the basis of total sales, a larger firm will have a higher ratio of total sales in the sector.

The "concentration ratio" is derived from the market shares. It gives the sum of market shares of the few largest firms in the sector, and is a measure of market power. It is not the correct choice in this case.

4 0
2 years ago
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12345 [234]

Answer:

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Explanation:

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There is a gap between practice and ploicies,, and this is as a result of poor implementation.

Moddleanagers play an important role of supplying the employees with information of management expectations along with ways in which implementation of policies can be effectively done.

On the other hand they also act as channels for feedback to management so that they will know how to adjust policies that are not meetings the set objectives.

8 0
3 years ago
6. Choose a good you are familiar with, and analyze its economic utility, using the questions below. NOTE: Choose a good for thi
xxTIMURxx [149]

Answer:Rational expressions are fractions that have a polynomial in the numerator, denominator, or both. ... There are no numbers that can do this, so we say “division by zero is undefined”. ... Find any values for x that would make the denominator equal to 0 by setting the ... Answer. The domain is all real numbers except −9 and 1.

Explanation:

6 0
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