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12 3 FILE HOME INSERT Paste Clipboard A1 A B Calibri BIU- Font ? 10 REVIEW VIEW Sign In PAGE LAYOUT Calculating investment returns - Excel - 11 AA V x ✓ fx с 17 FORMULAS DATA % Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles- Styles D EF G H J K M You bought one of Great White Shark Repellant Co.'s 6.5 percent coupon bonds one year ago for $1,090. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.2 percent. If the inflation rate was 3.9 percent over the past year, what was your total real return on investment? 10 11 12 13 و 4567995997 14 15 16 17 18 19 20 21 22 23 Coupon rate 6.50% Purchase price $ 1,090.00 Par value (% of par) 100 Par value (in dollars) $ 1,000 1 01/01/00 01/01/14 5.20% Coupons per year Settlement Maturity Current YTM Inflation rate 3.90% Complete the following analysis. Do not hard code values in your calculations. Current dollar price Nominal return Real return

12 3 FILE HOME INSERT Paste Clipboard A1 A B Calibri BIU- Font ? 10 REVIEW VIEW Sign In PAGE LAYOUT Calculating investment returns - Excel - 11 AA V x ✓ fx с 17 FORMULAS DATA % Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles- Styles D EF G H J K M You bought one of Great White Shark Repellant Co.'s 6.5 percent coupon bonds one year ago for $1,090. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.2 percent. If the inflation rate was 3.9 percent over the past year, what was your total real return on investment? 10 11 12 13 و 4567995997 14 15 16 17 18 19 20 21 22 23 Coupon rate 6.50% Purchase price $ 1,090.00 Par value (% of par) 100 Par value (in dollars) $ 1,000 1 01/01/00 01/01/14 5.20% Coupons per year Settlement Maturity Current YTM Inflation rate 3.90% Complete the following analysis. Do not hard code values in your calculations. Current dollar price Nominal return Real return

Essentials Of Investments
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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12 3 FILE HOME INSERT Paste Clipboard A1 A B Calibri BIU- Font ? 10 REVIEW VIEW Sign In PAGE LAYOUT Calculating investment returns - Excel - 11 AA V x ✓ fx с 17 FORMULAS DATA % Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles- Styles D EF G H J K M You bought one of Great White Shark Repellant Co.'s 6.5 percent coupon bonds one year ago for $1,090. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.2 percent. If the inflation rate was 3.9 percent over the past year, what was your total real return on investment? 10 11 12 13 و 4567995997 14 15 16 17 18 19 20 21 22 23 Coupon rate 6.50% Purchase price $ 1,090.00 Par value (% of par) 100 Par value (in dollars) $ 1,000 1 01/01/00 01/01/14 5.20% Coupons per year Settlement Maturity Current YTM Inflation rate 3.90% Complete the following analysis. Do not hard code values in your calculations. Current dollar price Nominal return Real return
Transcribed Image Text:12 3 FILE HOME INSERT Paste Clipboard A1 A B Calibri BIU- Font ? 10 REVIEW VIEW Sign In PAGE LAYOUT Calculating investment returns - Excel - 11 AA V x ✓ fx с 17 FORMULAS DATA % Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles- Styles D EF G H J K M You bought one of Great White Shark Repellant Co.'s 6.5 percent coupon bonds one year ago for $1,090. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.2 percent. If the inflation rate was 3.9 percent over the past year, what was your total real return on investment? 10 11 12 13 و 4567995997 14 15 16 17 18 19 20 21 22 23 Coupon rate 6.50% Purchase price $ 1,090.00 Par value (% of par) 100 Par value (in dollars) $ 1,000 1 01/01/00 01/01/14 5.20% Coupons per year Settlement Maturity Current YTM Inflation rate 3.90% Complete the following analysis. Do not hard code values in your calculations. Current dollar price Nominal return Real return
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