UNCOVERED INTEREST PARITY Let us take a simple example in order to understand uncovered interest parity condition. The interest rate in the Eurozone for one year is slightly above 4% when compared to Czech interest rate which is less than 3% for one year. But despite still having negative interest rate differential we can see many investors still preferring and holding Czech assets. This is because financial market participants expects the Czech crown shall appreciate in the future and are ready
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perpetual bond is currently selling for RS. 95/-. The coupon rate of interest is 13.5%. The approximate discount rate is 15%. The value of the bond and the YTM is: (a) Rs. 90/- and 14.2% Value is (13.5*15%=90) and YTM is ((13.5/95)*100=14.21%) (b) Rs. 100/- and 13.5% (c) Rs. 90 and 15% (d) Rs. 90/- and 13.5% 902. In 2001‚ Meridian Ltd. has issued bonds of Rs. 10‚000/-each due in 2011 with a 14% per annum coupon rate payable at the end of each year during the life of the bond. If the required
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NAME: MASSAWE BARAKA‚ REG. NO: 2010-04-03894. 12 FINANCE 202 INDIVIDUAL ASSIGNMENT UDBS Consider a 10 year bond that has a face value shs 1000‚ a coupon rate of 6% and pays interest once a year. (a)Suppose person A bought this bond at par when it was initially issued and sold it 1 year later to person B for shs 1024.What is B’s total return? Soln Total return =[ Interest paid +(selling price – buying price)]/buying price Given; Annual interest paid = coupon rate x par value‚ coupon
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A person’s identity is the self of sense they have‚ that can be reflected by the way society‚ peers‚ and the individual sees themselves. Class‚ ethnicity‚ age‚ religion‚ and gender are very much parts of our identity. Our gender‚ which is based on the socio-cultural expectations of males and females being associated with masculinity and femininity‚ affects how we behave and how we view things. Traditional gender roles mean that a female must be feminine‚ and a male must be masculine. Agents of socialisation
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Introduction Apple Inc is an American multinational organization located in 1 infinite loop‚ Cupertino‚ California 95014‚ in the middle of the Silicon Valley. It is focused on designing and developing the personal computers‚ other related software products‚ and the electronic products such as MP3 players and iPods. Apple Inc’s main products are iMac‚ iPod‚ iPhone‚ and its latest advanced product is iPad‚ which is on the verge of creating another revolution after iPhone. Apple was founded by
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BONDS Bonds pay fixed coupon (interest) payments at fixed intervals (usually every six months) and pay the par value at maturity. Par value = $1‚000 Coupon = 6.5% or par value per year‚ or $65 per year ($32.50 every six months). Maturity = 28 years (matures in 2032). Issued by AT&T. Types of Bonds Debentures - unsecured bonds. Subordinated debentures - unsecured “junior” debt. Mortgage bonds - secured bonds. Zeros - bonds that pay only par value at maturity; no coupons. Junk bonds - speculative or
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Discuss the advantages and disadvantages of the purposive approach. (10 marks) There are many advantages to the purposive approach. Firstly‚ it gives effect to Parliaments intentions and avoids injustice‚ so the judges can avoid obvious absurdities and injustives so enables them to comply with Parliamentary sovreignity by doing what Parliament would have wanted; even though it’s ignoring the clear meaning of the words Parliament used. For example‚ in Coltman V Bibby Tankers when they had to interpret
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BOND PROBLEM SOLUTIONS 1. Six years ago‚ The Corzine Company sold a 20-year bond issue with a 14 percent annual coupon rate and a 9 percent call premium. Today‚ Corzine called the bonds. The bonds originally were sold at their face value of $1‚000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. PV = 1000; N = 6; PMT = 140; FV = 1090; CPT I/Y I/Y = 15.02% 2. You just purchased
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Natasha Romanishan Class six Assignment 8 1. Why was there such opposition to the proposed Constitution of 1787? There was opposition to the constitution because many mainly the anti-federalists believed it would turn into tyranny and everything that happened in the American Revolution and there steps towards a democracy would end and it would become like Britain. Therefore the war would mean nothing and democracy would not happen‚ the government would take over. 2. Was there a violation of revolutionary
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Explain the Importance of Evaluating Learning Activities. The reasons why it is important to evaluate learning activities are: • To see what is working and what needs removing or changing • To assess how the activities are being delivered and how they could be improved • To see how the activities are being received by the participants Evaluation is important as it helps out when planning and helps you to think about the learning that has taken place. Spending time going through
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