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

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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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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