If investors receive a 7.0% interest rate on their bank deposits, what real interest rate will...
If investors receive a 6.7% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is: Check my Work If investors receive a 6.7 % interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real Interest Rate a. Zero % b. 3.7...
Find the interest rate implied by the following combinations of present and future values: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) Present Value Years Future Value Interest Rate $310 12 496 % 138 5 194 % 210 8 210 %
Find the interest rate implied by the following combinations of present and future values: (Do not round intermediate calculations. Enter your answers as percent rounded to 2 decimal places. Leave no cells blank- be certain to enter "0" wherever required.) Present Value Years Future Value Interest Rate $330 10 591 % 148 3 192 % 230 6 230 % A B Present Value Years Future Value Interest Rate SSSO 10 591 % 148 S 192 % 230 6...
You purchase 100 shares of stock for $60 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is () $57; (i) $60; (ii) $66? (Leave no cells blank-be certain to enter "O" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return b, what is your real (inflation-adjusted) rate of return if the inflation rate is 4%? (Do...
Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.44 % 8.56 % 2 8.79 12.19 3 6.02 6.79 4 5.82 5.01 5 5.60 6.55 6 8.39 8.87 7 10.71 13.14 8 12.85 12.37 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury...
You will receive $100 from a zero-coupon savings bond in 3 years. The nominal interest rate is 7.80%. a. What is the present value of the proceeds from the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present Value: b. If the inflation rate over the next few years is expected to be 2.80%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round...
Prepare an amortization schedule for a five-year loan of $67,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) b. How much interest is paid in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c....
Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table for an eight-year period: YearT-bill returnInflation 17.32%8.68% 28.19 12.31 35.90 6.91 45.22 4.89 55.48 6.67 67.79 8.99 710.59 13.26 812.25 12.49 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills % Average annual inflation...
You will receive $100 from a zero-coupon savings bond in 3 years. The nominal interest rate is 8%. a. What is the present value of the proceeds from the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the inflation rate over the next few years is expected to be 3%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round your answer...
You will receive $100 from a zero-coupon savings bond in 4 years. The nominal interest rate is 8.20%. a. What is the present value of the proceeds from the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the inflation rate over the next few years is expected to be 3.20%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round your answer...