Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Indexation Strategy: Your bank has stated that it pays 3% interest, annually compounded, for a 7-year certificate of deposit. You have decided to invest $ 10,000 for 7 years. If the average rate of inflation during the 7 yeas is 2.5%/year during the 7 years, and you anticipate being in the 20% tax bracket for the first 3 years, and 40% for the next 4 years, what is your real, after tax return? Should you make the deposit?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939130

Have any Question? 


Related Questions in Basic Finance

1 what is meant by the term structural compression how does

1. What is meant by the term "structural compression"? How does this term affect logistics? 2. What is a horizontal company and how would this type of company be organized? What are the strengths of this type of organiza ...

A 1000 bond is paying a coupon interest rate of 7 the

A $1,000 Bond is paying a coupon interest rate of 7%. The current Required Rate of Return in the market is 5%. If you were buying this Bond on the market today, would you expect to pay more than $1,000 for it (Premium) o ...

Company y expects to pay an annual dividend of 240 a share

Company Y expects to pay an annual dividend of $2.40 a share next year. The market value of the stock is $72 a share and the overall market return is expected to be 14.7 percent. What is the capital gains yield?

1 what are sustainable hr practices and how do they affect

1. What are sustainable HR practices and how do they affect employees? 2. How can HR discover the sustainability sweet spot of an organization when it comes to employment relations?

In april 2010 christina romer who was then serving as chair

In April 2010, Christina Romer, who was then serving as chair of the President's Council of Economic Advisers, argued: "The overwhelming weight of the evidence is that the current very high-and very disturbing-levels of ...

1 describe in your own words the techniques that scientists

1. Describe in your own words the techniques that scientists use to help them avoid drawing statistically invalid conclusions. 2. What is a statistically significant result? What is the relationship among statistical sig ...

A small droplet of liquid detergent falling through air in

A small droplet of liquid detergent, falling through air in a spray drying tower, has its diameter reduced as water evaporates from the surface. If we assume that the temperature of the liquid within the drop remains at ...

1 why might an individual find a 20 federal reserve note to

1. Why might an individual find a $20 Federal Reserve Note to be more desirable as a form of money than a $20 gold coin? Which would the government find more desirable? Briefly explain. 2. What are the key differences be ...

1 what is the difference between earnings per share eps

1. What is the difference between earnings per share (EPS), funds from operations (FFO), adjusted funds from operations (AFFO), and dividends per share? 2. Explain how an investor in an equity REIT may receive a current ...

Which of the following would be a wash sale explaina you

Which of the following would be a wash sale? Explain. a. You buy a stock at $30. Three weeks later, you sell the stock at $26. Two weeks later, you buy a call on the stock. b. You buy a stock at $40. One month later, you ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen