Question

ou observe that the inflation rate in the United States is 2.7 percent per year and that T-bills currently yield 3.2 percent annually. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 10 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate %

Answer #1

You observe that the inflation rate in the United States is 3.4
percent per year and that T-bills currently yield 4 percent
annually.
What do you estimate the inflation rate to be in Australia, if
short-term Australian government securities yield 4 percent per
year?
What do you estimate the inflation rate to be in Canada, if
short-term Canadian government securities yield 7 percent per
year?
What do you estimate the inflation rate to be in Taiwan, if...

Suppose the real rate is 3.6 percent and the inflation rate is
5.2 percent. What rate would you expect to see on a Treasury bill?
(Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)

You find a certain stock that had returns of 9 percent, −16
percent, 18 percent, and 14 percent for four of the last five
years. The average return of the stock over this period was 10.3
percent. a. What was the stock’s return for the missing year? (Do
not round intermediate calculations and enter your answer as a
percent rounded to 1 decimal place, e.g., 32.1.) b. What is the
standard deviation of the stock’s return? (Do not round
intermediate...

High Flyer, Inc., wishes to maintain a growth rate of 15.75
percent per year and a debt–equity ratio of .85. The profit margin
is 4.9 percent, and total asset turnover is constant at 1.09.
What is the dividend payout ratio? (A negative answer
should be indicated by a minus sign. Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Dividend payout ratio
%
What is the maximum...

You’ve observed the following returns on Yasmin Corporation’s
stock over the past five years: 18 percent, –3 percent, 16 percent,
11 percent, and 10 percent. Suppose the average inflation rate over
this period was 3.2 percent and the average T-bill rate over the
period was 5.5 percent.
a. What was the average real return on the
company's stock? (Do not round intermediate calculations.
Enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average real return ...

Suppose you bought a bond with a coupon rate of 7.2 percent paid
annually one year ago for $945. The bond sells for $990 today.
a. Assuming a $1,000 face value, what was your total dollar
return on this investment over the past year? (Do not round
intermediate calculations and round your answer to the nearest
whole number, e.g., 32.) Total dollar return $
b. What was your total nominal rate of return on this investment
over the past year?...

Suppose you bought a bond with a coupon rate of 4.2 percent paid
annually one year ago for $900. The bond sells for $950 today.
a.
Assuming a $1,000 face value, what was your total dollar return
on this investment over the past year? (Do not round
intermediate calculations and round your answer to the nearest
whole number, e.g., 32.)
Total dollar
return
$
b.
What was your total nominal rate of return on this investment
over the past year?...

Suppose we have the following Treasury bill returns and
inflation rates over an eight-year period:
Year
Treasury Bills
Inflation
1
10.45%
12.55%
2
11.36
16.00
3
9.06
10.29
4
8.34
7.97
5
8.88
10.29
6
11.23
12.77
7
14.11
16.98
8
15.97
16.90
a.
Calculate the average return for Treasury bills and the average
annual inflation rate...

Sig, Inc., wishes to maintain a growth rate of 13 percent per
year and a debt-equity ratio of .3. The profit margin is 7 percent,
and the ratio of total assets to sales is constant at 1.67.
What dividend payout ratio is necessary to achieve this growth
rate under these constraints? (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations
and enter your answer as a percent rounded to the nearest whole
number, e.g.,...

The real risk-free rate is 3.00%. Inflation is expected to be
1.50% this year and 4.25% during the next 2 years. Assume that the
maturity risk premium is zero. What is the yield on 2-year Treasury
securities? Do not round intermediate calculations. Round your
answer to two decimal places. % What is the yield on 3-year
Treasury securities? Do not round intermediate calculations. Round
your answer to two decimal places.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 6 minutes ago

asked 18 minutes ago

asked 33 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago