Consider a 360 percent tips with an issue cpi reference of


1) Annual dividends of AT&T Corp (T) grew from $0.82 in 2000 to $1.31 in 2012. What was the annual growth rate?

2)Consider a 3.60 percent TIPS with an issue CPI reference of 185.8. At the beginning of this year, the CPI was 193.3 and was at 199.8 at the end of the year.

What was the capital gain of the TIPS in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

What was the capital gain of the TIPS in percentage

3)Compute the price of a 5.3 percent coupon bond with 15 years left to maturity and a market interest rate of 8.4 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Is this a discount or premium bond?

4) Consider a 2.60 percent TIPS with an issue CPI reference of 187.9. At the beginning of this year, the reference CPI was 196.4 and was at 204.5 at the end of the year.

What was the capital gain of the TIPS in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places. 

What was the capital gain of the TIPS in percentage?

Solution Preview :

Prepared by a verified Expert
Business Management: Consider a 360 percent tips with an issue cpi reference of
Reference No:- TGS02579445

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)