You bought one of Great White Shark Repellant Company's 11 percent coupon bonds one year ago for $810. These bonds make annual payments and mature 10 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 13 percent. If the inflation rate was 36 percent over the past year, what was your total real return on investment? Multiple Choice O O O 28.09% 19.44% 20.31% O 6.23% O 19.34%

You bought one of Great White Shark Repellant Company's 11 percent coupon bonds one year ago for $810. These bonds make annual payments and mature 10 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 13 percent. If the inflation rate was 36 percent over the past year, what was your total real return on investment? Multiple Choice O O O 28.09% 19.44% 20.31% O 6.23% O 19.34%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please include the excel formula Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010. The bond sells for $1,025 today.a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?b. What was your total nominal rate of return on this investment over the past year?c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? Input area: Coupon rate 6% Initial price $1,010 Ending price $1,025 Par value $1,000 Inflation rate 3% (Use cells A6 to B10 from the given information to complete this question.) Output area: Coupon paid Dollar return Nominal return Real return
Suppose you bought a $1,000 face value bond with a coupon rate of 5.6 percent one year ago. The purchase price was $987.50. You sold the bond today for $994.20. If the inflation rate last year was 2.6 percent, what was your exact real rate of return on this investment? O 4.88% O 5.32% O 3.65% O 3.78% AMoving to another question will save this response. «< Question 3 of 30
Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond sells for $1,063 today. • Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? • What was your total nominal rate of return on this investment over the past year? • If the inflation rate last year was 3 percent, what was your total real rate of return on this investment?
23. Calculating Investment Returns You bought one of Elkins Manufacturing Co.'s 5.4 percent coupon bonds one year ago for $1,030. These bonds make annual payments, mature eight years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.1 percent. If the inflation rate was 2.9 percent over the past year, what would be your total real return on the investment?
you bought one great white shark repellent company's 10 percent coupon bonds one year ago for $810. These bonds make annual payments and mature 9 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 12 percent. If the inflation rate was 3.6 percent over the past year, what was your total real return on investment
Dog Suppose you purchase a 10-year bond with 6.6% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5.4% when you purchased and sold the bond, a. what cash flows will you pay and receive from your investment in the bond per $100 face value? b. what is the annual rate of return of your investment?
A4 3 You bought one of BB Co.’s 10% coupon bonds one year ago for $1100. These bonds make annual payments, have a face value of $1000 each, and mature seven years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 8%. If the inflation rate was 3% over the past year, what would be your total real return on investment according to the Exact Fisher Formula?
You bought one of Elkins Manufacturing Co.'s 6.8 percent coupon bonds one year ago for $1,054. These bonds make annual payments, mature 15 years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 5 percent. If the inflation rate was 3.6 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total real return %
You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for $1,049. These bonds make annual payments and mature 20 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5 percent. If the inflation rate was 4.6 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the total real return?
You bought one of Elkins Manufacturing Co.'s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments, mature 15 years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent. If the inflation rate was 2.4 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Last year you purchased a 15 year bond at 98 with a coupon rate of 5%. The current market rate is 3%. If you sold your bond today, what would be your total return on your investment (ignore taxes)? View keyboard shortcuts Paragraph
You bought one of Great White Shark Repellant Company's 8.4 percent coupon bonds one year ago for $1,048. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent. The bonds have a par value of $1,000. If the inflation rate was 2.6 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total real return %

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