Answer:
$997.37
Explanation:
For computing the invoice price first we have to determine the accrued interest which is shown below:
Accrued interest is
= Par value × coupon rate × remaining months ÷ total months
= $1,000 × 6.11% × 4 months ÷ 12 months
= $20.37
Now
Invoice price is
= Clean price + Accrued interest
= $977 + $20.37
= $997.37
Answer:
diversify
Explanation:
A mutual fund refers to the professionally managed investment group that funnels money for the acquisition of financial instruments from several investors.
Relative to direct investment in individual financial instruments, mutual funds have pros and cons. The main benefits of mutual funds are providing efficiencies, a better level of diversification, providing liquidity, and being proceeded by institutional investors. On the down side, the creditors will pay different costs and expenses in such a mutual fund.
Mutual funds ' main types comprise open-ended securities, investment vehicles with groups, and closed-end assets. Exchange-traded funds (ETFs) are open-end securities or funds with investment groups listed on markets. Many close-ended securities often mimic exchange-traded funds, as they can be exchanged on stock markets in order to enhance liquidity.
Answer:
Preferred stock
Explanation:
The capital market instruments refer to the instrument that involves stock, bonds, debentures, the preferred stock that deals in the securities and come under the capital
Also, the other options that are mentioned are the money market examples
Therefore the correct option is preferred stock and the same is to be considered
Answer:
the share should sell at $46
Explanation:
We use the CAPM method to know the required return of the capital
risk free 0.04
market rate 0.1
beta(non diversifiable risk) 2
Ke 0.16000 = 16%
Now we calculate with the dividends grow model the intrinsic value of the share:
$4.6/0.1 = $46
Answer: The new confidence index is 0.7143
Explanation: Consumer confidence index which is known as the confidence index is an index used for estimating the economy of the U.S, it is published by the conference board which shows the decree of excitement in peoples's activities on their savings and spendings.
To calculate the new confidence index;
STEP1: Add the bond increase to the current bond;
6% + 1% = 7%
4% + 1% = 5%
STEP 2: FIND THE NEW CONFIDENCE INDEX
5% ÷ 7% = 0.7143
The old confidence index can also be calculated as
4% ÷ 6% = 0.6667
