No hand written solution and no img Consider the following information for a period of years: Arithmetic Mean Long-term government bonds 7.5% Long-term corporate bonds 7.6 Inflation 4.4 What is the real return on long-term government bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the real return on long-term corporate bonds? long term government bond: ? long term corporate bonds: ?

No hand written solution and no img Consider the following information for a period of years: Arithmetic Mean Long-term government bonds 7.5% Long-term corporate bonds 7.6 Inflation 4.4 What is the real return on long-term government bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the real return on long-term corporate bonds? long term government bond: ? long term corporate bonds: ?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2E

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17. An engineer owns a design firm that generates $1 million per year in gross fees. The engineer calculates that the firm receive $100,000 per year in profits after paying all employee salaries, benefits, and other expenses. Assume zero inflation and no growth. If the expected rate of return is 10%, the fair market price of the firm is most nearly
15) The nominal required return on XYZ stock is 14%. The nominal risk-free rate of return is 4% and the real risk-free rate of return is 2%. How much are investors requiring as compenssation for risk? What is the inflation premium?
if you expect the inflation rate to be 15 percent next year and a one-year bond has a yied to maturity of 7 percent, then the real interest rate on this bond is ___%.
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