Answer: e. sum of the dividend yield and the capital gains yields is 8.2 percent
Explanation:
The return of 8.2% that was realized is the sum of the dividend yield and the capital gains yield.
The dividend yield refers to the income earned from dividends issued by the company whose stock you owned divided by the stock price.
The capital yield is the change in price since you bought the stock for instance, buying the stock at a price of $15 and it is now worth $20.
These two yields will combine to give you the return of 8.2% that you realized.
Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.
Explanation:
The real interest rate is the market interest rate less the inflation rate.
The inflation rate always reduce the purchasing power of money which is the real measure of the purchasing power of money and not the money face value.
Answer:
Yield to call is 9.8%
Explanation:
The rate of return bonholders receives on a callable bond until the call date is called Yield to call.
Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
C = Coupon Payment = $105 per year
F = Face value = $1,000
P = Call price = $1,100
n -= number of years to call = 5
Yield to Call = [ $105 + ( $1,000 - $1,100 ) / 5 ] / [ ( $1,000 + $1,100 ) / 2 ]
Yield to Call = [ $105 - 2 ] / $1,050 = $103 / $1,050 = 0.098 = 9.8%
Answer:
The circular flow model shows the interaction between two groups of economic decision-makers―households and businesses―and two types of economic markets―the market for resources and the market for goods and services.
The awnser is b hope this helps:)
