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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%

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What organization did ukraine want to join that russia did not want them to join?.
IgorC [24]

Answer:

Ukraine wanted to join NATO but Russia sees that as a no-no

Explanation:

facts

3 0
2 years ago
Grande Communications offers a lower price to customers who subscribe to Grande television, telephone, and internet services all
garri49 [273]

The answer is Price Bundling.

Price bundling is a marketing strategy. In this type of strategy, the company combines two or more products to sell them at a lower price than if the same products were sold individually.

It is also called product bundling or product-bundle pricing. As two or more products are combined/ bundled together to sell them at a lower price.

Hence, when Grande Communications offers a lower price to customers who subscribe to Grande television, telephone, and internet services all at once. This is an example of Price Bundling.

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8 0
1 year ago
An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the
german

Answer:

79.5%.

Explanation:

Rate of return = \frac{final value - initial value}{initial value} x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

                                                             = $1225

Net value of cost = $12700 + $1225

                             = $13925

Net value of the land when sold = $25000

∴ Rate of return = \frac{25000 - 13925}{13925} x 100

                          = 0.7953 x 100

                          = 79.53%

The rate of return of the acre of land is 79.5%.

7 0
2 years ago
QUESTION 3 of 10: Generally, budgets are created for:
MrRissso [65]

Answer:

b) One month

Explanation:

6 0
2 years ago
Read 2 more answers
2. What are the main costs associated with higher education? Why might the financial burden of college actually be economically
julsineya [31]

The major expenses or costs that are associated with higher education are tuition and fees, books and suppliers, room and board, personal expenses, and transportation.

<h3>What do you mean by costs?</h3>

Costs refer to the price paid for acquiring, producing, or maintaining something.

The major costs associated with education are books and suppliers, tuition and fees, room and board, and transportation.

Growing demand, rising financial aid, and exploding costs of administrators are the reasons that led to the increase in college costs.

The financial burden of college will be worthwhile having higher lifetime earnings, indirect financial benefits jobs, etc.

Learn more about Costs here:

brainly.com/question/15135554

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4 0
2 years ago
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