You bought one of Great White Shark Repellant Co.'s 7.4 percent coupon bondsone year ago for $1,041. These bonds make annual payments and mature 20 yearsfrom now. Suppose you decide to sell your bonds today, when the required returnon the bonds is 6 percent. The bonds have a par value of $1,000.If the inflation rate was 4 percent over the past year, what was your total realreturn on investment? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)

Step 1:The formulas and the inputs used is as follows: Step 2:The result is as follows: Step 3:…

Answered: You bought one of Great White Shark…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.)
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 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 %
You bought one of Great White Shark Repellant Company's 8 percent coupon bonds one year ago for $1,059. 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 7 percent. The bonds have a par value of $1,000. If the inflation rate was 4.8 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.)
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
You bought one of Colton Manufacturing Co.'s 6 percent coupon bonds one year ago for $1,040. These bonds make annual payments and mature eleven years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 5 percent. The par value is $1,000. If the inflation rate was 2 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 %
Suppose you bought a bond with an annual coupon rate of 4 percent one year ago for $800. The bond sells for $850 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 2 percent, what was your total real rate of return on this investment?
Suppose you bought a bond with an annual coupon of 9 percent one year ago for $1,160. The bond sells for $1,210 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 7 percent, what was your total real rate of return on this investment?
Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,170. The bond sells for $1,235 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?
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 3.6 percent over the past year, what was your total real return on investment? Multiple Choice O O O O O 28.09% 19.44% 20.31% 6.23% 19.34%
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?
If you purchased a bond one year ago for $1000 and just sold it for $1100 after receiving the $50 annual coupon payment, then what was your real return on the investment if theinflation rate was 2.1% for the same year?

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