Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A fixed income security investor can expect to receive a rupee returns from the following sources: (a) Interest payment, (b) Capital gain or loss at maturity or when sold, and (c) Income from reinvestment of the interim cash flow.
Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest until the security is not removed from the portfolio.
Current yield measures the rate of return earned on a bond if it is purchased at its current market price and if the coupon interest is received.
Yield to maturity is the rate of return earned by an investor who purchases a bond and holds it till maturity.
Yield-to-call is similar to yield-to-maturity and is used to calculate the value of a callable bond.
Yield-to-put is the rate at which the present value of cash flow to the first put date equals the price plus interest rate.
These T-bills are short-term securities with maturity of 91,182 and 364 days. These are issued at a discount and are redeemed at par.
Theoretical spot rate is the interest rate that should be used to discount a default-free cash flow.
The nominal spread is the difference between the yield for a non-treasury bond and a comparable maturity treasury coupon security.
The nominal spread fails to consider the term structure of the spot rates and the fact that, for bonds with embedded option, future interest rate volatility may alter the cash flows.
What is working capital? Working capital comprise of the current assets of the firm.
Q. Computation of overall Cost of Capital? Computation of Value of the Firm (V) & Overall Cost of Capital when debt is lowered to Rs, 1, 00,000 When the debt is lowered to R
discuss cost of capital in finance#
Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to
how do you find total cash outflow through maturity
Why might it be very simple for an investor desiring to diversify his portfolio internationally to buy depository receipts as compared to the actual shares of the company? Answ
What does the “weight” refer to in the weighted average cost of capital? The weight considered to in weighted average cost of capital consider the portion of the total capital in
Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc
Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.
Q. Describes the Certainty Equivalent Coefficient Method? Introduction: - Certainty equivalent coefficient process which makes adjustment against risk in the estimates of futur
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd