You bought one of Rocky Mountain Manufacturing Co s 9 percent coupon bonds one year ago for $1,049 80 These bonds make annual payments and mature seven years from now Suppose that you decide to sell your bonds today, when the required return on the bonds is 8 5 percent If the inflation rate was 4 4 percent over the past year, what would be your total real return on the investment (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) PLEASE EXPLAIN EVERY CALCULATION THROUGHLY AND WHY YOU DID THEM

Question

You bought one of Rocky Mountain Manufacturing Co s 9 percent coupon bonds one year ago for $1,049 80  These bonds make annual payments and mature seven years from now  Suppose that you decide to sell your bonds today, when the required return on the bonds is 8 5 percent  If the inflation rate was 4 4 percent over the past year, what would be your total real return on the investment  (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) PLEASE EXPLAIN EVERY CALCULATION THROUGHLY AND WHY YOU DID THEM

Accepted Answer

The Answer is in the image, click to view ...

You bought one of Rocky Mountain Manufacturing Co.s 9 percent coupon bonds one year ago for $1,049.80.

Question:

Managerial Decision Modeling With Spreadsheets

You bought one of Rocky Mountain Manufacturing Co.s 9 percent coupon bonds one year ago for $1,049.80.

Question:

Expert Answer:

The Answer is in the image, click to view ... View the full answer

Managerial Decision Modeling With Spreadsheets

Students also viewed these Finance questions