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Illustrate the zero bonds security instruments.
Zero coupon bonds are instruments under that a borrower promises, at the recent time, to pay one exact nominal sum (face value) to the lender at one exact future date. Into return, at the recent date the borrower obtains the bond price. Zeros are also termed as discount bonds. Obviously, with positive interest rates, there the price of a zero coupon bond should be lower than the face value.
Above the line deductions are certain kinds of deductions that are deducted from your income before the adjusted gross income is computed for tax purposes. Above the line deduct
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If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero? Explain your answer. Even though common stockholders don't have
FIXED ASSETS 200 000 LONG TERM LIABILITIES CURRENT ASSETS CASH 40 000 LOAN
Explain the basic differences between the operation of a currency forward market and a futures market. Answer: The forward market is an OTC market in which the forward contract
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Example: - Two firm U as well as L is identical in every respect except that U is unlevered and L is levered. L has Rs. 20Lakh of 8% debt outstanding. The net operating income of b
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