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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b. Net income will be understated by $7,500.
c. Accounts Receivable will be overstated by $7,500.
d. Net income will be overstated by $7,500.
b. how low can the price of ixnay shares fall before you receive a margin call?
Answer:
a. will you receive a margin call?
No you wouldn't. You borrowed $20,000 on the margin which means that you invested $20,000 of your own money. You purchased 1,000 stocks (= $40,000 / $40) of ixnay at $40, and now the stock price is $35. This means that you lost $5,000, and you percentage on the margin = $15,000 / $35,000 = 43%. Since the maintenance margin is 35%, you are still in.
b. how low can the price of ixnay shares fall before you receive a margin call?
we can use the following formula = (1,000price - $20,000)/1,000price = 35%
350price = 1,000price - $20,000
$20,000 = 1,000price - 350price = 650price
price = $20,000/650 = $30.769 ≈ $30.77 or lower
You will not receive a margin call when the shares drop to $35 as the equity would still be above the required maintenance margin level of 35%. However, if the shares drop to approximately $57.14 per share, you will receive a margin call as the equity falls to the maintenance margin level.
In this scenario, you've invested in shares of Ixnay using margin lending. Since the initial margin requirement is 50%, you loaned $20,000 and put up an equal amount as collateral. This allowed you to buy 1,000 shares (i.e., $40,000 or $40 per share for 1,000 shares).
A. The margin call occurs when the equity in the account falls below the maintenance margin, which in this case, is set at 35%. The equity, in terms of market value, is equal to (number of shares * market price per share) - borrowed amount. Two days later, if the price of each share falls to $35, your equity would be: (1,000 * $35) - $20,000 = $15,000. The maintenance margin would be your equity divided by the market value of the shares, i.e., $15,000/$35,000 = 0.428 or around 42.8%. As this is greater than the maintenance margin of 35%, you will not receive a margin call.
B. The price at which you'll receive a margin call is when your equity equals the maintenance margin. To calculate this, use the following formula: (maintenance margin * Market Value) + Loan Amount. Substituting known values, we have: (0.35 * Market Value) = ~$20,000. Solving for Market Value, we get ~$57,142.86. Therefore, divide this by the number of shares you have, i.e., 1000 shares, to find that the price of the stock must fall to approximately $57.14 per share before you receive a margin call.
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b. demand-based pricing
c. gap-determined pricing
d. fixed-margin pricing
Answer: A. MPC = 0.8
B. Multiplier = 5
Explanation:
Given in the question above, we have:
Change in consumption = $8 billion
Change in income = $10 billion
(We know, GDP = C + I + G + (X-M)
Where;
C= consumption
I= investment
G= government expenditure
X-M= net exports
Therefore, change in Investment by $10B means GDP automatically increases by $10B. Similarly, change in Consumption by $8B means GDP automatically increases by $8B.
a) The formula used to find MPC:
MPC = Change in consumption / Change in income
MPC = 8/10 = 0.8
Therefore MPC = 0.8
b) Formula to find multiplier:
k = 1/(1-MPC)
k= 1/1-0.8
k= 1/0.2
k= 5.
Answer:
The writer must correct the word
when a computer can't understand what you were trying to say because the word word is spelled so poorly, it can't give similar words because it doesn't know what your trying to say, also they are built to never ignore unless you specially tell them to, and finally it doesn't bring up the dictionary, trust me, i spell lots of words wrong.
Explanation:
Answer:
you did not mispell it
Explanation: