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
umka21 [38]
3 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]3 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%

You might be interested in
What strategy did president roosevelt use to restore america's confidence in government and the private banking system?
Klio2033 [76]

The strategy used by president Roosevelt to restore America's confidence in government and the private banking system was that, he reassured fireside talks on the radio.

Roosevelt fought to expand the role of the federal government in the nation's economy, and also embraced Keynesian economic policies. He also implemented a series of projects and programs called the New Deal to stabilize the economy.

Roosevelt called his radio talks about issues of public concern as fireside talks. These talks made Americans feel as if President Roosevelt was talking directly to them. He continued to use fireside talks throughout his presidency to address the fears and concerns of the Americans

Hence, these talks gave confidence to the American people to overcome their fears.

To learn more about Roosevelt here:

brainly.com/question/1000563

#SPJ4

5 0
2 years ago
Bennett Co. has a potential new project that is expected to generate annual revenues of $260,300, with variable costs of $143,20
patriot [66]

Answer:

$45,340

Explanation:

Calculation to determine the annual operating cash flow

Sale $260,300

Less: Operating Cost $143,200

Contribution $117,100

($260,300-$143,200)

Less: Fixed Cost $60,700

Less: Depreciation as per table given below $24,800

Profit before tax $31,600

($117,100-$60,700-$24,800)

Tax $11,060

($34%$31,600)

Profit After Tax $20,540

($31,600-$11,060)

Add Depreciation $24,800

Cash Profit After tax $45,340

($20,540+$24,800)

Therefore the annual operating cash flow is $45,340

3 0
3 years ago
With practical illustrations discuss how managers can leverage on organizational behaviour component to maximize business succes
VARVARA [1.3K]

Answer:

Leadership, Communication and culture are the components of organization structure.

(Check Explanation for how they can be used to maximize business success).

Explanation:

So, organization behaviour is an aspect of Psychology and sociology that deals with the ways in which workers and employees behave are act in a specific company or business organization.

Just as it is stated above; Leadership, Communication, structure and culture are the components of organization structure and these components can be to maximize business success.

CULTURE: A company's culture can be use in maximizing business success through the way the workers in the company are expected (from their culture) to treat their customers. The culture is used in the assessment of PERSONALITIES that are needed to be recruited for the role in the organization for efficiency in the role so as to maximize success.

LEADERSHIP: the style of leadership adopted by each organization determines the way in which success can be maximized. Whether through the style in which the workers' s talent are being nurtured and ideas are collected from the employers or through the leadership style in which the leader dictates it all.

STRUCTURE: knowing the structure of an organization helps in maximizing success that is to say the workers know how management and authority operates which will aid in efficient success maximization.

3 0
3 years ago
To achieve high-quality performance, an organization needs to match job requirements and people by performing a job analysis.
scZoUnD [109]

Answer:

True

Explanation:

Job analysis helps the organization to make suitable changes in the organizational structure, so that it matches the needs and requirements of the organization.

7 0
2 years ago
There are three clues labeled "daily double" on the game show Jeopardy. If three equally matched contenders play, what is the pr
yulyashka [42]

Answer:

a)  0.0358

b)  0.0395

c)  0.1506

Explanation:

Number of clues "daily doubles" = 3

Determine the probabilities

<u>a) P(single contestant finds all three ) </u>

assuming event A= a returning champion gets the "daily double" in first trial

P(A) = 1/30 , P(~A) = 29/30              

assuming event B = any player picks up "daily double" after the first move

P(B |~A ) = 1/3

hence : P ( B and ~A ) = 29/30 * 1/3 = 29/90

<em>considering second round </em>

P(player chooses both daily doubles ) = 1/3 * 1/3 = 1/9

∴ P(single contestant finds all three )  = 29/90 * 1/9 = 0.0358

<u>B) P ( returning champion gets all three ) </u>

= (1/30 + 29/90 )* 1/9

= 32 / 810 = 0.0395

<u>c) P ( each player selects only one )</u>

P = 32/405 + 29/405

  = 61 / 405 = 0.1506

7 0
3 years ago
Other questions:
  • Your company is experiencing an increase in malware incidents. Your manager is asking for advice on how best to verify that comp
    12·1 answer
  • Suppose you were interested in conducting an experiment with two independent variables. why should you use a factorial design in
    8·1 answer
  • At the start of the year, Northern Lights had $8,000 worth of merchandise. What do we know about Northern Lights?
    5·2 answers
  • Which of the following is NOT an example of a financial market?
    6·1 answer
  • Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis could have invested the $250,000 i
    5·1 answer
  • Use the drop-down menus to answer the questions. In this circular flow mode, what does the letter A present? What does the lette
    11·2 answers
  • In the workplace leaders at every level in every department are important if the company is going to suceed. True or False
    13·1 answer
  • What is liberal humanism??
    11·1 answer
  • Market demand is found by:
    13·1 answer
  • Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!