Example 14.3: Yield to Maturity Suppose an 8% coupon‚ 30year bond is selling at 1‚276.76 what average rate of return would be earned by an investor purchasing the bond at this price? We find the interest rate at which the present value of the remaining 60 semiannual payments equal the bond price. This is the rate consistent with the observed price of the bond. Therefore‚ we solve for r in the following equation: [pic] 1‚276.76 = [pic] $40 + $1000
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purchase 1‚000 shares of Spears Grinders‚ Inc. stock for $45 per share. A year later‚ the stock pays a dividend of $1.25 per share‚ and it sells for $49. a. Calculate your total dollar return. 1‚000 ($1.25 + $4) = $5‚250 b. Calculate your total percentage return. ($49 + $1.25 - $45)/$45 = 0.1167 or 11.67%. c. Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue
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US. Q.8. Explain the difference between diminishing marginal returns and the diseconomies of scale? Diminishing returns to scale looks at how production output decreases as one input is increased‚ while other inputs are left constant. Diseconomies of scale occurs when the per unit cost rises as output is increased. Another major difference between diminishing returns and diseconomies of scale is that diminishing returns to scale occur in the short run‚ whereas diseconomies of scale is
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5 Report | This is a Premium essay for upgraded members Upgrade to access full essay Portfolio Management – Risk and Return Copyright © 1996-2006 Investment Analytics 1 Time Value of Money Simple vs compound interest Daycount methods Discounting principles Copyright © 1996-2006 Investment Analytics Portfolio Management – Risk & Return Slide: 2 Time Value of Money Basic principle Money received today is different from money received in the future This difference
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of the stocks of 500 leading companies. Because each return is weighted by the total market value of each companys stock‚ the index emphasizes larger companies. The file ex01 57.txt contains the real (that is‚ adjusted for the changing buying power of the dollar) returns on the S&P 500 for the years from 1971 to 2003. (a) Make a histogram of the real returns. Describe the shape of the distribution. Answer) The Histogram for the real Returns‚ of Standard and Poor’s stock Index can be plotted using
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param: num a pointer to double * returns: true (1) if s is a number else 0 or false. * postcondition: if it is a number‚ num will hold * the value of the number * */ int isNumber(char *s‚ double *num) { char *end; double returnNum; returnNum = strtod(s‚ &end); /* If there’s anything in end‚ it’s not a number */ if(strcmp(end‚ "") == 0) { *num = returnNum; return 1; } else { return 0; } } /* param: stack the stack being
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after satisfying all the rules of probate in a formal probate process‚ the executor will close the estate. As a result‚ the executor becomes an acting executor responsible for closing tasks as described in the article Estate Income Tax Returns: Review and File the Returns. In the end‚ the one closing task an acting executor likes is the final task: the task to close the temporary home office. Close the Temporary Home Office The task of closing the temporary home office signals the definitive end
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progress moves at a rapid pace. After a while‚ however‚ the technology matures and progress slows (Shane‚ 2009). S-curve analysis is not only used to plot the development of a new technology but also highlight the point of diminishing returns. At the diminishing return point‚ organizations should be looking into new technology alternatives. However‚ there are limitations to the S-curve analysis: Limitations of the S-Curve * The model does not give any clear hints to managers on how to act/react
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Spring Framework Tutorial Isabelle Muszynski 15 April 2003 Chapter 1 Introduction This tutorial covers the main packages in the Spring Framework. For full details‚ we refer you to Rod Johnson’s book‚ Expert One-on-One J2EE Design and Development‚ published by Wrox Press in 2002. The book’s ISBN number is 1-86100-784-1. The code for the Spring Framework is contained in package com.interface21. We provide UML diagrams for the subpackages‚ as well as code samples. 1.1 Setting up for the
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the economy. 4.) Two factors that influence the nominal risk-free rate are: A. The relative ease or tightness in capital markets and the expected rate of inflation 5.)The total risk for a security can be measured by its: C. Standard Deviation or returns 6.) Which of the following is an underwriting function? B. Risk-bearing 7.) An ETF (exchange fund): C. Is priced continuously during the trading day 8.) Which of the following are reasons that U.S. investors should consider foreign markets when constructing
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