This is not that much difficult than you think. This type of questions we can do through TVM mode easily. PV= 190 FV= 212.8 N=2 CPT I/Y= 5.8 Hope this will add some value...
This is not that much difficult than you think. This type of questions we can do through TVM mode easily.
The option C is incorrect becoz the PV model doesn't affect with the holding period of investor. Let's suppose there are 2 investor in which one have holding period is 2 yr and another has 10. So when we use PV model we have to put expected price of share after 2 yr so this price includes all PV ofRead more
The option C is incorrect becoz the PV model doesn’t affect with the holding period of investor. Let’s suppose there are 2 investor in which one have holding period is 2 yr and another has 10. So when we use PV model we have to put expected price of share after 2 yr so this price includes all PV of future value Cashflow which also includes after 10yr price so this shows holding period doesn’t affect the model.
The answer should be A i.e. income. An fund with large no. of retirees required to invest in income producing security like large dividend paying stock because the fund has to generate sufficient payoff so that the retiree will continue their lifestyle. Hopefully it will help you.
The answer should be A i.e. income. An fund with large no. of retirees required to invest in income producing security like large dividend paying stock because the fund has to generate sufficient payoff so that the retiree will continue their lifestyle.
Let's start with option B so we are studied that the D of an ZCB is its maturity so this option is incorrect. Next option C, so we also studied that higher coupon rate implies lower duration. So now we left with only option A so I think it can be happened if the YTM of short term bond is very high aRead more
Let’s start with option B so we are studied that the D of an ZCB is its maturity so this option is incorrect.
Next option C, so we also studied that higher coupon rate implies lower duration.
So now we left with only option A so I think it can be happened if the YTM of short term bond is very high and YTM of long term bond is very low and also bond price is also depend upon various other factor like we have study sometime short term bond is more volatile than long term bond becoz they are also affected due to change in monetory policy so investors wider their spread and demand for high volatility .
The answer should be A. The securities which are purchase for trading purpose are considered as the core business activities of company. So that is going under the CFO. So also profit on sale of proceedings of trading security come under CFO. Issuance of bond are come under the CFF as capital raisedRead more
The answer should be A.
The securities which are purchase for trading purpose are considered as the core business activities of company. So that is going under the CFO. So also profit on sale of proceedings of trading security come under CFO.
Issuance of bond are come under the CFF as capital raised.
So we are left with option A in which we are investing in affiliate company so it is come under CFI.
If the securities are issued first time then it is considered in national income but if they are traded in secondary market then only the commission earn by broker is included in national income.
If the securities are issued first time then it is considered in national income but if they are traded in secondary market then only the commission earn by broker is included in national income.
Capitalisation of interest rate occur when the production of asset taken and in that period interest is capitalize and if the company choose to expensed interest then it is called expensing. Capitalzation of int. lead to create liability and expensing reduces the profit of current year.
Capitalisation of interest rate occur when the production of asset taken and in that period interest is capitalize and if the company choose to expensed interest then it is called expensing.
Capitalzation of int. lead to create liability and expensing reduces the profit of current year.
GDP growth deflator
This is not that much difficult than you think. This type of questions we can do through TVM mode easily. PV= 190 FV= 212.8 N=2 CPT I/Y= 5.8 Hope this will add some value...
This is not that much difficult than you think. This type of questions we can do through TVM mode easily.
CPT I/Y= 5.8
Hope this will add some value…
See lessTime value of money – Risk Free Real Rate
Yeah, both are the synonyms.
Yeah, both are the synonyms.
See lessEquity
The option C is incorrect becoz the PV model doesn't affect with the holding period of investor. Let's suppose there are 2 investor in which one have holding period is 2 yr and another has 10. So when we use PV model we have to put expected price of share after 2 yr so this price includes all PV ofRead more
The option C is incorrect becoz the PV model doesn’t affect with the holding period of investor. Let’s suppose there are 2 investor in which one have holding period is 2 yr and another has 10. So when we use PV model we have to put expected price of share after 2 yr so this price includes all PV of future value Cashflow which also includes after 10yr price so this shows holding period doesn’t affect the model.
Hope this will help you.
See lessPortfolio
The answer should be A i.e. income. An fund with large no. of retirees required to invest in income producing security like large dividend paying stock because the fund has to generate sufficient payoff so that the retiree will continue their lifestyle. Hopefully it will help you.
The answer should be A i.e. income. An fund with large no. of retirees required to invest in income producing security like large dividend paying stock because the fund has to generate sufficient payoff so that the retiree will continue their lifestyle.
Hopefully it will help you.
See lessUnderstanding Fixed-Income Risk and Return
Let's start with option B so we are studied that the D of an ZCB is its maturity so this option is incorrect. Next option C, so we also studied that higher coupon rate implies lower duration. So now we left with only option A so I think it can be happened if the YTM of short term bond is very high aRead more
Let’s start with option B so we are studied that the D of an ZCB is its maturity so this option is incorrect.
Next option C, so we also studied that higher coupon rate implies lower duration.
So now we left with only option A so I think it can be happened if the YTM of short term bond is very high and YTM of long term bond is very low and also bond price is also depend upon various other factor like we have study sometime short term bond is more volatile than long term bond becoz they are also affected due to change in monetory policy so investors wider their spread and demand for high volatility .
Hope this will help you
See lessFixed Income doubt
You are correct but you are bit confusing. Discount rate is stated annual rate. So we take I/Y = 11÷2 i.e. 5.5. Hope this will help you
You are correct but you are bit confusing. Discount rate is stated annual rate. So we take I/Y = 11÷2 i.e. 5.5.
Hope this will help you
See lessCash Flow statement
Answer should be 74.7 Hope this will help you.
Answer should be 74.7
Hope this will help you.
See lesscash flow statment
The answer should be A. The securities which are purchase for trading purpose are considered as the core business activities of company. So that is going under the CFO. So also profit on sale of proceedings of trading security come under CFO. Issuance of bond are come under the CFF as capital raisedRead more
The answer should be A.
The securities which are purchase for trading purpose are considered as the core business activities of company. So that is going under the CFO. So also profit on sale of proceedings of trading security come under CFO.
Issuance of bond are come under the CFF as capital raised.
National Income
If the securities are issued first time then it is considered in national income but if they are traded in secondary market then only the commission earn by broker is included in national income.
If the securities are issued first time then it is considered in national income but if they are traded in secondary market then only the commission earn by broker is included in national income.
See lessFra
Capitalisation of interest rate occur when the production of asset taken and in that period interest is capitalize and if the company choose to expensed interest then it is called expensing. Capitalzation of int. lead to create liability and expensing reduces the profit of current year.
Capitalisation of interest rate occur when the production of asset taken and in that period interest is capitalize and if the company choose to expensed interest then it is called expensing.
Capitalzation of int. lead to create liability and expensing reduces the profit of current year.
See less