Expected capital gains yield for this bond = 3.08%.
Given that Coupon Rate (Annual) = 8.95%, Yield to Maturity = 3.87%, Par value = $1,000, Period = 13 years. We need to find Expected Capital Gains Yield.
We know that the formula for the yield on a bond is, Yield on bond = Current Yield + Capital Gains Yield. Here, we know the current yield and yield to maturity. So, Capital Gains Yield = Yield on bond - Current Yield. Now,Current Yield = Annual Coupon / Current price.
Current price can be found using the following formula, Current price = PV of Bond = C x (1- (1+i)^-n / i) + FV x (1+i)^-n where, C = Coupon Rate (Annual), FV = Face value i = Yield to Maturity / 2 (as it is semi-annual) and n = Years to Maturity x 2 (as it is semi-annual).
Substituting values in the above formula, we get, Current price = $1,153.42Current Yield = 8.95% / $1,153.42 = 0.00776Expected yield on bond = 3.87% + 0.00776= 3.08%. Therefore, the expected capital gains yield for this bond is 3.08%.
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Megan's wage is 18 beignets per hour in 2010. The price of a comic book is $9.00 in 2010. The price of a comic book is $18.00 and the price of a beignet is $2.00; Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.The inflation rate is the difference between nominal and real variables. Nominal variables are based on the current prices and are measured in price based on the value they hold at a given time. Real variables are adjusted for the ever changing price level and they change over time.
Answer: Political model for decision making
Explanation: Under the political model, it is assumed that every activity of the organisation is political and ideological. Thus, in such a structure every problem calls for extensive debate and discussions with every stake holder regarding the solution.
In the given case, Jefferson firm involve many people in their decision making as majority of decisions are complex.
Hence political model best fits it.
OB. The difference between costs and revenues
OC. An upward trend in prices
OD. An increase in the value of an investment
The correct answer is OD. An increase in the value of an investment.
A capital gain refers to the profit earned from the increase in the value of an investment. It occurs when the selling price of an asset, such as stocks, real estate, or bonds, is higher than its purchase price. When an individual or entity sells an investment for a higher price than what they initially paid for it, they realize a capital gain.
For example, let's say you purchased shares of a company's stock for $10 each. After a period of time, the value of the stock increases to $20 per share. If you decide to sell the shares at this higher price, you would realize a capital gain of $10 per share.
It's important to note that capital gains are typically subject to taxation, depending on the tax laws and regulations in the specific jurisdiction. The tax rate on capital gains may vary based on factors such as the holding period of the investment and the taxpayer's income level.