![shayshayyy41](/avatars/15888.jpg)
shayshayyy41
20.11.2020 •
Business
A corporate bond that pays interest rates annualy yields a rate of return of 9.50%. the inflation rate for the same period is 3%. What is the real rate of return on this bond?a. 1.06%.
b. 12.50%.
c. 3.00%.
d. 6.31%.
e. 3.17%.
Solved
Show answers
More tips
- F Food and Cooking Learn How to Make Ice Cream at Home - Step by Step Guide...
- H Health and Medicine When can it be said that a person has a normal pulse?...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- F Family and Home Why Having Pets at Home is Good for Your Health...
- H Health and Medicine How to perform artificial respiration?...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
- F Food and Cooking How to Properly Cook Buckwheat?...
- F Food and Cooking How Many Grams Are In a Tablespoon?...
- L Leisure and Entertainment Carving: History and Techniques for Creating Vegetable and Fruit Decorations...
Answers on questions: Business
- B Business According to the quantity theory of money, what must the growth rate of the money supply be given the following information? The growth rate of real GDP is 1.0%....
- B Business Macinski Leasing Company Leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,000. Under the 3 year, non-cancelable...
- B Business On January 1, 2018, Fascom had the following account balances in its shareholders equity accounts. Common stock, $1 par, 250,000 shares issued 250,000 Paid-in capital—excess...
- B Business Linden Co. has 1,000,000 euros as payables due in 90 days, and is certain that euro is going to depreciate substantially over time. Assuming the firm is correct,...
- B Business Ocoa Beach Company is considering replacing a machine that is presently used in the production of its product. The following data are available: Old Machine New Machine...
- B Business If money supply, velocity, and price level are fixed, then increases in real GDP: Group of answer choices occur without changes in the other variables. are impossible...
- B Business Esther will be helping Heather with her firm s billing, but Heather does not want Esther to have access to her firm s settings or her clients QuickBooks Online companies....
- B Business The trend of consumers renting out their belongings when they are not in use to other consumers who need them for a limited time is called....
- M Mathematics Ltd say we re given the quadratic equation x + 2x2 - 4 = -7x + 6 Enter your answers separated by a comma...
- E English What is Liesl s viewpoint in A Letter from the Atlantic ? A. She misses her life and her friends in Germany and feels apprehensive about what awaits her in New York....
Ответ:
d. 6.31%
Explanation:
The relationship between the nominal interest rate(9.50%),inflation rate( 3%) and the real rate of return is shown by the formula below:
(1+nominal rate of return)=(1+inflation rate)*(1+real rate of return)
nominal rate of return=9.50%
inflation rate=3%
real rate of return is the unknown
(1+9.50%)=(1+3%)*(1+real rate of return)
1.095=1.03*(1+real rate of return)
1.095/1.03=1+real rate of return
real rate of return=(1.095/1.03)-1
real rate of return=6.31%
Ответ:
The correct answer is D.
Explanation:
Giving the following information:
Selling price= 19
Variable cost per pack= 12
At a current annual sales of 43,000 packs, the store earns $75,000 before taxes on course packs.
First, we need to calculate the total variable cost.
Total variable cost= 12*43,000= 516,000
Now, we can calculate the total contribution margin:
Contribution margin= (19*43,000) - 516,000= 301,000
The earnings before taxes is the result of deducting from the contribution margin the fixed costs.
Fixed costs= contribution margin - earnings before taxes
Fixed costs= 301,000 - 75,000= 226,000