Sources of return, Financial Management

Assignment Help:

When an investor invests in fixed income securities, he receives returns from one or more of the following sources:

  • Coupon Interest payment.

  • Capital gain (or loss) when security matures, or is called or sold.

  • Interest received on the reinvested interim cash flows.

All these three sources of return from a fixed income security are to be considered while calculating the potential return using a yield measure.


Related Discussions:- Sources of return

Limitation of profit maximisation -quality of benefits, Limitation of pro...

Limitation of profit maximisation -Quality of Benefits Probably the most vital technical limitation of profit maximisation as an operational objective, is that it ignores qua

Bank loans for a company seeking short-term financing, What are the pros an...

What are the pros and cons of commercial paper relative to bank loans for a company seeking short-term financing? Commercial paper is generally a cheaper source of short-term f

Cost of capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s...

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

Explain continuous compounding benefit an investor, How does continuous com...

How does continuous compounding benefit an investor? The influence of increasing the number of compounding periods every year is to increase the future value of the investment. Th

Shareholder value, SHAREHOLDER VALUE There are various measures used by...

SHAREHOLDER VALUE There are various measures used by market analysts and financial experts to derive the maximum Shareholder Value of a particular company but we would take the

Regular payback period, The director of capital budgeting for a firm has re...

The director of capital budgeting for a firm has recognized two mutually exclusive projects, A and B, with the following expected net cash flows:

Explain the concept of working capital, Q. Explain the concept of working c...

Q. Explain the concept of working capital. Distinguish between variable and permanent working capital. What is the significance of such distinction in financing working capital req

Advantages to a company from having a robust health, Z works for HS Company...

Z works for HS Company and has been asked to undertake an assessment of any health and safety issues that might be potential hazards in the department which she manages. Z's respon

Wishart and Associates — Financial Alternatives, 4. In the front of each fo...

4. In the front of each folder were some handwritten notes that Meenda had made on Monday before he left. Give focus on the said notes.

Agency problem, Discuss how a business might limit agency problem between m...

Discuss how a business might limit agency problem between management and creditors

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd