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
Mkey [24]
3 years ago
12

A bond that pays interest annually yielded 7.25 percent last year. The inflation rate for the same period was 5.50 percent. What

was the actual real rate of return on this bond for last year?
Business
1 answer:
kvasek [131]3 years ago
5 0

Answer:

Actual real rate of return = 1.658768 (Approx)

Explanation:

Given:

Nominal rate of return = 7.25% = 7.25 / 100 = 0.0725

Inflation rate = 5.50% = 5.50 / 100 = 0.055

Actual real rate of return = ?

Computation of actual real rate of return :

Actual real rate of return = [(1+Nominal rate of return)/(1+Inflation rate)] - 1

Actual real rate of return = [(1+0.0725)/(1+0.055)] - 1

Actual real rate of return = [(1.0725)/(1.055)] - 1

Actual real rate of return = [1.01658768] - 1

Actual real rate of return = 0.01658768

Actual real rate of return = 1.658768 (Approx)

You might be interested in
What are the benefits of preparing a business plan?​
Damm [24]

Answer:

See the whole business. Business planning done right connects the dots in your business so you get a better picture of the whole

Strategic Focus

Set priorities

Manage change

Develop accountability

Manage cash

Strategic alignment

Milestones

Explanation:

6 0
3 years ago
Arturo is a pipeline welder at the midamerican energy company. recently, he had to make a decision about which torch to order fo
mylen [45]

Answer:

they are dependent on situational probabilities

Explanation:

Arturo's decision about which torch to purchase is being made under conditions of ambiguity , because: they are dependent on other factors.

The decision making is not certainty because his decision on which torch to buy is dependent on probabilities neither is it uncertain because we have information on probabilities of what the outcome might be.

Hence the decision making is ambiguous because it is between certain and uncertain and its outcome is dependent on the probabilities of having a discount or not.

5 0
3 years ago
Read 2 more answers
1. Give a brief description of the Business and Industry Endorsement.
777dan777 [17]

Answer:

siness and Industry Endorsement.

;,;l,

Explanation:

3 0
3 years ago
This is for you so i dont feel bad
Ivahew [28]
Ok thank you very much
7 0
3 years ago
Revenue or income, minus departmental expenses and undistributed expenses equals:
mixer [17]
Departmental income can be considered the contribution of revenues to profits because it is computed after deducting the direct costs of providing the service or product. Subtracting all of the undistributed operating expenses from total revenues results in gross operating profit per available room (GOPPAR).
8 0
3 years ago
Other questions:
  • Terrence buys a new car for $20,000. The value of the car depreciates by 15% each year. If f(x) represents the value of the car
    15·2 answers
  • Consumers' affinity for sports brands may be immune to threats other brands face, such as competition for attention and switchin
    14·1 answer
  • Maker-Bot Corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. No di
    15·1 answer
  • What are the three major parts in the organization and marketing<br> section of the business plan?
    6·1 answer
  • Honda Motor Company is considering offering a $ 1 comma 800 rebate on its​ minivan, lowering the​ vehicle's price from $ 29 comm
    12·1 answer
  • The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units duri
    13·1 answer
  • Sandhill Company issued $2,400,000 of 10%, 10-year bonds on January 1, 2017, at 103. Interest is payable semiannually on July 1
    12·1 answer
  • Is quadrilateral JKLM the result of a dilation of quadrilateral
    6·1 answer
  • Rugen Inc., a hospitality chain, hired a large number of military veterans in the hope that it would help put the business in a
    6·1 answer
  • Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insura
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!