FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

U buy a zero coupon bond maturing at 1 year that adjusts its principal it pays using CPI. Assuming that you bought the bond at

  1. U buy a zero coupon bond maturing at 1 year that adjusts its principal it pays using CPI. Assuming that you bought the bond at PAR ( price equals to the principal you want to pay=100$) and inflation is 3% in the first year how much principal u will get after one year?

    103.0

    103.5

    102.9

    NONE of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Public, Health, And Not-for-Profit Organizations

Financial Management For Public, Health, And Not-for-Profit Organizations

Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese

6th Edition

978-1506396811, 150639681X

More Books

Students also viewed these Finance questions

Question

★★★★★
A U.S. company sells a product to a British company with the transaction listed in British pounds. On the date of the sale, the transaction total of $16,000 is billed as 10,000, reflecting an...

Answered: 1 week ago

Question

★★★★★
OfficePlus sells its main product, ergonomic mouse pads, for $12 each. Its variable cost is $5.20 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly...

Answered: 1 week ago

Question

★★★★★
What factors contribute to young childrens ability to think about and visually recognize themselves?

Answered: 1 week ago

Question

★★★★★
The following amounts summarize the financial position of Rodriguez Computing, Inc., on September 30, 2016: During October 2016, Rodriguez Computing completed these transactions: a. The business...

Answered: 1 week ago

Question

★★★★★
Balance Sheet Data Income Statement Data Cash $1,200,000 Sales Accounts receivable $1,000,000 2,000,000 3,000,000 6,000,000 Inventory Current assets Accounts payable Accruals Notes payable Current...

Answered: 1 week ago

Question

★★★★★
You have $500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfolio is 16%. If you wish to earn a 22%return, how much invest / borrow in...

Answered: 1 week ago

Question

★★★★★
A 4 kg block is sliding at a constant velocity of 1.5 m/s on a table, due to the pull of a hanging 0.5 kg mass as shown to the right. What is the consistent force of friction (Ff) acting between the...

Answered: 1 week ago

Question

★★★★★
. A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; and capacity per...

Answered: 1 week ago

Question

★★★★★
45. Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor...

Answered: 1 week ago

Question

★★★★★
Knowing that there are many disasters that exceed local resources, but don't rise to the level of federalsupport, how can an emergency manager at a local or state level manage expectations for these...

Answered: 1 week ago

Question

★★★★★
A local University conducted a survey of over 2,000 MBA alumni to explore the issue of work-life balance. Each participant received a score ranging from 0 to 100, with lower scores indicating a...

Answered: 1 week ago

Question

★★★★★
1. Judith Sills, clinical psychologist who writes a column for Psychology Today, says your brand is the professional identity you create in the minds of others. Would you take the time to create your...

Answered: 1 week ago

Question

★★★★★
2. Organizations are continually searching for ways to reward various employee behaviors. Pretend you are currently working at an upscale retail clothing store and the manager asks you to help her...

Answered: 1 week ago

Question

★★★★★
c. Time off. Employees who achieve sales goals established by management could earn up to four hours of paid time off each week.

Answered: 1 week ago

Previous Question Next Question