Answer:
The answer is "B"
False
Explanation:
At maturity the bond’s realized yield can not be equal to 7% because of the uncertain future interest rate.
Answer:
Current dividend paid (Do) = $1.35
Growth rate (g) = 11% = 0.11
Cost of equity (ke) = 24% = 0.24
Po = Do<u>(1 + g)</u>
Ke - g
Po = $1.35<u>(1 + 0.11)</u>
0.24 - 0.11
Po = <u>$1.4985</u>
0.13
Po = $11.53
Explanation:
The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.
Answer:
The right approach is Option C (global minimum variance portfolio).
Explanation:
- A completely-invested portfolio with either a low uncertainty factor seems to be the GMV portfolio. This same GMV portfolio corresponds to or is situated mostly on the left end including its FI-efficient frontier.
- Although aside from either the full-investment requirement, no restrictions are enforced, the GMV portfolio deals for analytical portrayal.
The latter options offered are not relevant to something like the scenario presented. So that is indeed the correct solution.
Shortening the repayment schedule is not typically involved in rescheduling activities of a troubled sovereign loan.
Governments of independent political entities can issue debt, typically in the form of securities, known as sovereign debt.
Unique risks associated with sovereign debt are not present in other forms of lending.
The creditworthiness of sovereign debtors and the securities they issue is frequently rated by a number of private agencies.
Economies and political systems that are stable are often seen as having better credit risks, enabling them to borrow on more favorable terms.
Governments incur sovereign debt through the issuance of bonds, notes, and other debt instruments as well as by the borrowing of funds from other nations and international institutions like the International Monetary Fund.
Foreign currencies as well as domestic ones may be used to pay off sovereign debt, which may be due to outsiders or to the nation's own population.
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