Suppose you bought a $1,000 face value bond with a coupon rate of 5.6 percent one year ago. the purchase price was $987.50. you sold the bond today for $994.20. if the inflation rate last year was 2.6 percent, what was your exact real rate of return on this investment?

The real rate of return on this investment is 3.65%

Explanation:

For computing the real rate of return, we have to compute the nominal rate of return as it is not given in the question.

The formula to compute nominal rate of return is shown below:

= (Sale price - purchase price) + coupon ÷ (purchase price)

= ($994.20 - $987.50) + $56 ÷ ($987.50)

= ($62.70) ÷ ($987.50)

= 6.35%

The coupon = $1,000 × 5.6 = $56

Now we have to apply the formula for computing the real rate of return which is shown below:

Real rate of return = {( 1 + nominal rate of return) ÷ ( 1+ inflation rate)} - 1

                               = {(1 + 6.35%) ÷ ( 1 + 2.6%) - 1

                                = 1.0365 - 1

                                = 3.65%

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.

the first one $24,630