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OBS ALE Calculating investment returns - Excel FORMULAS DATA REVIEW HOME INSERT PAGE LAYOUT VIEW Sign In Calibri 11 % - AA A Paste BIU-

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OBS ALE Calculating investment returns - Excel FORMULAS DATA REVIEW HOME INSERT PAGE LAYOUT VIEW Sign In Calibri 11 % - AA A Paste BIU- Cells Alignment Number Conditional Format as Cell Formatting Table- Styles Styles Clipboard Font A1 X B D EF H 1 1 K 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? 3 6 7 10 Coupon rate Purchase price $ Par value % of par) Par value (in dollars) $ Coupons per year Settlement Maturity Current YTM Inflation rate 6.50% 1,000.00 100 1,000 1 01/01/00 01/01/14 5.20% 3.90% 12 13 15 16 17 18 19 Complete the following analysis. Do not hard code values in your calculations. Current dollar price Sheet1 READY 100% Attempt(s) Hint HS AILE Calculating investment returns - Excel FORMULAS DATA REVIEW HOME INSERT PAGE LAYOUT VIEW Sign In Calibri 11 AA Paste BIU Alignment Number Conditional Formatas Cell Formatting Table Styles Styles Clipboard Font A1 D H K 7 8 10 Purchase price $ Par value (% of par) Par value (in dollars) $ Coupons per year Settlement Maturity Current YTM Inflation rate 1.000.00 100 1.000 1 01/01/00 01/01/14 5.20% 3.00% 11 12 14 15 16 17 Complete the following analysis. Do not hard code values in your calculations. Current dollar price 19 20 21 Nominal return 22 23 Real return 24 25 26 27 Sheet1 # 100% READY Attempt(s) Hint

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