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How a zero coupon bond provide profit?
Question options:
with interest payments.
with decrease in risk.
with increase in price.
with conversion to stock.
This is a fictional task in sense that there is no concrete plan from Iacom as explained in the task text. It applies information about costs and investments.
Assume that you buy a stock for $48 by paying $25 and borrowing the remaining $23 from a brokerage firm at 8 percent yearly interest. The stock pays an annual dividend of $0.80 per share,
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