Investment b is expected to pay 209 dollars each quarter


You own two investments, A and B, that have a combined total value of 64, 462 dollars.

Investment A is expected to make its next payment in 1 month. A's next payment is expected to be 358 dollars and subsequent payments are expected to grow by 0.43 percent per month forever. The expected return for investment A is 1.04 percent per month.

Investment B is expected to pay 209 dollars each quarter forever and the next payment is expected in 3 months.

What is the quarterly expected return for investment B? Answer as a quarterly rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Investment b is expected to pay 209 dollars each quarter
Reference No:- TGS02827361

Expected delivery within 24 Hours