Test bank and solution manual of CH02 asset classes and financial instrusment (2)
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Test bank and solution manual of CH02 asset classes and financial instrusment (2)
Test bank and solution manual of CH02 asset classes and financial instrusment (2)
BKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET C Test bank and solution manual of CH02 asset classes and financial instrusment (2)CLASSES AND FINANCIAL INSTRUMENTS1Common stock is an ownership share in a publicly held corporation. Common shareholders have voting rights and may receive dividends. Preferred stock represents nonvoting shares in a corporation, usually paying a fixed stream of dividends. While corporate bonds are l Test bank and solution manual of CH02 asset classes and financial instrusment (2)ong-term debt issued by corporations, the bonds typically pay semi-annual coupons and return the face value of the bond at maturity.2While the DJIA haTest bank and solution manual of CH02 asset classes and financial instrusment (2)
s 30 large corporations in the index, it does not represent the overall market nearly as well as the more than 5000 stocks contained in The Wilshire iBKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET C Test bank and solution manual of CH02 asset classes and financial instrusment (2)r changes.4The major components of the money market are Treasury bills, certificates of deposit, commercial paper, bankers’ acceptances. Eurodollars, repos, reserves, federal funds, and brokers’ calls.5American Depositary Receipts, or ADRs. are certificates traded in U.S. markets that represent owne Test bank and solution manual of CH02 asset classes and financial instrusment (2)rship in shares of a foreign company. Investors may also purchase shares of foreign companies on foreign exchanges. Lastly, investors may use internatTest bank and solution manual of CH02 asset classes and financial instrusment (2)
ional mutual funds to own shares indirectly.6The coupons paid by municipal bonds are exempt from federal income tax and from state tax in many states.BKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET C Test bank and solution manual of CH02 asset classes and financial instrusment (2)ate (LIBOR)—a key reference rate in the money market—is the rate at which large banks in London are willing to lend money among themselves. The Fed funds rate is the rate of interest on very short-term loans among financial institutions in the U.S.8General obligation bonds are backed by the taxing p Test bank and solution manual of CH02 asset classes and financial instrusment (2)ower of the local governments, while revenue bonds have proceeds attached to specific projects. A revenue bond has fewer guarantees, it is riskier inTest bank and solution manual of CH02 asset classes and financial instrusment (2)
terms of default, and. therefore, you expect it to have a higher yield.9Corporations may exclude 70% of dividends received from domestic corporations BKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET C Test bank and solution manual of CH02 asset classes and financial instrusment (2) their original investment.Copyright € 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior writtenconsent of McGraw-Hill Education.Chapter 02 - Asset Classes and Financial Instruments11(a) A repurchase agreement is the sale of a security with a commitme Test bank and solution manual of CH02 asset classes and financial instrusment (2)nt to repurchase the same security at a specified future date and a designated price.12Money market securities arc referred to as “cash equivalents" bTest bank and solution manual of CH02 asset classes and financial instrusment (2)
ecause of ihcứ great liquidity. The prices of money market securities are very stable, and they can be converted to cash (i.e., sold) on very short noBKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET C Test bank and solution manual of CH02 asset classes and financial instrusment (2) .1038 orl-l 1 - 0.350.103814After-lax yield - Rate on the taxable bond X (1 - l ax rale)a.The taxable bond, with a zero tax bracket, the after-tax yield for the taxable bond is the same as the before-lax yield (5%). which is greater than the 4% yield on the municipal bond.b.The taxable bond. The af Test bank and solution manual of CH02 asset classes and financial instrusment (2)ter-tax yield for the taxable bond is: 0.05 X (1 - 0.10) = 0.045 or 4.50%.c.Neither. The after-tax yield for the taxable bond is: 0.05 X (1 - 0.20) =Test bank and solution manual of CH02 asset classes and financial instrusment (2)
0.4 or 4%. The after-tax yield of taxable bond is the same as that of the municipal bond.d.The municipal bond. The after-tax yield for the taxable bonBKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET C Test bank and solution manual of CH02 asset classes and financial instrusment (2)ield on the corporate bonds is: 0.09 X (I - 0.30) - 0.063 or 6.3%. Therefore, the municipals must offer at least 6.3% yields.16Using the formula of Equivalent taxable yield (r) -. we gel: Test bank and solution manual of CH02 asset classes and financial instrusment (2)BKM_10e_Chap002.pdfBKM_10e_IM_Ch02.pdfBKM_Ess_10e_Ch02_Student.pdfBKM_10e_Ch02.pdfChapter 02 - Asset Classes and Financial InstrumentsCHAPTER 2ASSET CGọi ngay
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