provide answer of this Financial accounting question Consider a 3.50% TIPS with an initial CPI referenceof 210.50. At the beginning of the year, the CPI was218.75 and reached 229.40 at the end of the year.Calculate the capital gain of the TIPS in percentageterms.(Do not round intermediate steps. Round the finalanswer to 2 decimal places.)

Step 1: Define Capital Gain in TIPSTreasury Inflation-Protected Securities (TIPS) adjust their…

Answered: Consider a 3.50% TIPS with an initial…

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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Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)
Given the last year's dividend is 9.80, speed of adjustment = 45%, target payout ratio 60% and EPS for current year 20. COMPUTE current year's dividend using Linter's model.
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.3 percent and the standard deviation of this asset for the period was 33.2 percent. Use the NORMDIST function in Excel® to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616.)
The past five monthly returns for PG&E are −3.47 percent, 4.63 percent, 4.07 percent, 6.92 percent, and 3.88 percent. What is the average monthly return? (Round your answer to 3 decimal places.) Average Return: ______.___%
Attempt History Current Attempt in Progress Wildhorse Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Cost Old Equipment Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs $80,240 $40,300 8 years $9,920 $0 $35,100 Cost New Equipment Estimated useful life Salvage value in 8 years Annual cash operating costs $38,000 8 years $4,800 $29,900 Depreciation is $10,030 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,800.
Ten annual returns are listed in the following table: | a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100.00 at the beginning, how much would you have at the end? a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) - 19.2% 16.1% 18.1% -49.5% 43.2% 1.9% -16.8% 45.9% 45.1% -3.5% Print Done ×
An insurance company’s projected loss ratio is 79.53 percent, and its loss adjustment expense ratio is 7.51 percent. It estimates that commission payments and dividends to policyholders will add another 13.96 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
What is the annual percentage yield (APY) for money invested at an annual rate of (A)4.66% compounded monthly? (B)4.67% compounded quarterly? A) What is the annual percentage yield (APY) for money invested at an annual rate of4.66% compounded monthly? The APY is _______ (Type an integer or decimal rounded to three decimal places as needed.) B) What is the annual percentage yield (APY) for money invested at an annual rate of 4.67% compounded quarterly? The APY is _______ (Type an integer or decimal rounded to three decimal places as needed.)
Two accounts each begin with a deposit of $7000. Both accounts have rates of 6.5%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five years, ten years, and 20 years. iClick the icon to view some finance formulas. 1 year 5 years 10 years 20 years Compounded annually Interest $ $ Balance $ $ $ $ $ $ (Round to the nearest dollar as needed.) Compounded continuously Balance Interest $ $
Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) - 19.7% 16.6% 17.7% -49.3% 43.8% 1.2% - 16.3% -3.4% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? 45.8% BILS a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is%. (Round to two decimal places.) 45.4%
Parents wish to have $150,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 3% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.) ...

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Consider a 3.50% TIPS with an initial CPI reference of 210.50. At the beginning of the year, the CPI was 218.75 and reached 229.40 at the end of the year. Calculate the capital gain of the TIPS in percentage terms. (Do not round intermediate steps. Round the final answer to 2 decimal places.)