Annual rate of capital gains

Assignment Help Finance Basics
Reference no: EM133062779

1. The default-free zero-coupon bond Y is quoted below par. If you expect the interest rate to increase in the next few months, you expect the annual rate of capital gains (Pt+1-Pt)/Pt to be...

a) positive 

b) negative

c) zero 

d) not enough info to answer 

2. According to the theory developed by Akerlof, if lenders propose a higher interest rate to borrowers, it necessarily leads to...

a) an increase in the quality of loans

b) an increase in bank's profits

c) an increase in the borrower's credit quality

d) none of the above

Reference no: EM133062779

Questions Cloud

What is the project discounted payback period : Where the appropriate discount rate for this type of project is 11 percent, what is the project's discounted payback period
Determining profit or loss from call option : Problem: You are the buyer of a call option which expires today. The call premium is $0.75 and the exercise price is $13.50.
Determining the investors gain : If the contract size is 10,000, what is the investors gain? Please provide the complete solution of this problem.
Calculate the average accounting return of this project : A project has average net income of AED 55 million a year over its 5-year life. Calculate the average accounting return of this project
Annual rate of capital gains : 1. The default-free zero-coupon bond Y is quoted below par. If you expect the interest rate to increase in the next few months, you expect the annual rate
What steps should you pursue to yield a quality report : Your responsibilities are to identify manufacturing activities and link them to the cost they drive. What steps should you pursue to yield a quality report
Calculate the firm market value capital structure : Suppose the Schoof Company has this book value balance sheet:
Discuss roles of financial manager in business organisation : Discuss the roles of a financial manager in a business organisation. Provide relevant examples to support your discussion
What is the total actual cost of direct manufacturing labor : Direct Materials (all materials purchased were used): Standard cost: $6.00 per pound of urn. What is the total actual cost of direct manufacturing labor

Reviews

Write a Review

Finance Basics Questions & Answers

  Why is it important for company abc to know its wacc

Find the Weighted Average Cost of Capital? If Company ABC wanted to lower its WACC, what could it do? Why is it important for Company ABC to know its WACC?

  Income statement statement of cash flows retained earnings

Which of the following financial statements is concerned with the company at a point in time? Income statement statement of cash flows retained earnings statement balance sheet

  Find an example when an organisation took up too much risk

two questions postgraduate level1find an example when an organisation took up too much risk and was unable to cope with

  What is the annualized yield to maturity

If the current price for these bonds is $938.57, what is the annualized yield to maturity?

  Find the optimal order quantity for the part

The purchasing department costs $450,000 a year and sends out an average of 2,000 orders. Find the optimal order quantity for the part, the time between orders and the minimum cost of stocking the part.

  Advise the injured audience members

Advise the injured audience members whether they can make New Nirvana Ltd liable for Nuclear Blast Sounds Pty Ltd's negligence.

  What is the portfolio required return

What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.

  What is the delivered price

The invoice had an April 8 date. Levin received the goods on April 19 and paid the invoice on April 25.

  What business opportunity does goldman sachs see here

Why do some commodity futures contracts trade at premium to spot (contango) while others trade at discounts( backwardation). Please explain the terms.

  Calculate the adjusted price of the call option

The risk free rate is 5% pa. You many find this table showing the values of the standard normal cumulative distribution function useful.

  What is a consensus forecast

What strategies can companies use to help meet or beat the forecasts, and why might those who analyze financial statements be concerned?

  What is the payback period for the project

Sweetbay supermarket's new project has initial cost is $5000 and it is expected to provide after tax operating cash flows of $2800 in year 1, $1900 in year 2, $2000 in year 3 and $1800 in year 4. The cost of capital for the project is 15%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd