Ytc - Study guides, Class notes & Summaries

An investor purchased and then sold a security eight months later for a gain. This gain is considered to be a short-term gain, and it will be taxed at a more favorable rate than long-term gains. Positions closed within 12 months or less are considered short term. When a gain is realized, it will be taxed at the same rate as the taxpayer's other ordinary income. By contrast, a long-term capital gain is taxed at a favorable long-term rate. If the dollar price of a municipal bond is 101...

What are statutory voting rights? - ANSWER-Allows the shareholder to vote one time per share for each seat on the board. If the investor owns 10 shares, she can use 10 shares to vote for position #1 and 10 shares to vote for position #2. What are cumulative voting rights? - ANSWER-Allows the shareholder to pool votes together and then allocate as desired. If the investor owns 10 shares and there are 2 open seats, she can use all 20 shares to vote for a single candidate. When are comm...

SIE Exam 2021. All Questions with accurate answers, 100% verified. What are statutory voting rights? - -Allows the shareholder to vote one time per share for each seat on the board. If the investor owns 10 shares, she can use 10 shares to vote for position #1 and 10 shares to vote for position #2. What are cumulative voting rights? - -Allows the shareholder to pool votes together and then allocate as desired. If the investor owns 10 shares and there are 2 open seats, she can use a...

CFA Level 1 Formulas Exams 245 Questions with Answers Price change based on convexity - CORRECT ANSWER -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - CORRECT ANSWER Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - CORRECT ANSWER [(v-)-(v+)]/[2V0(change in yield)] Future Value - CORRECT ANSWER PV(1+(I/Y)^N) PV - CORRECT ANSWER FV/(1+r)^n PV of perpetuity - CORRECT ANSWER PMT / discount rate Ap...

INV2601 ASSIGNMENT 2 Question 1 Answer: Reinvestment risk Explanation Lack of coupon payments on a zero coupon bond eliminates reinvestment risk. Reinvestment risk is a type of risk that a bondholder is exposed to when they receive cash inflows of which coupon payments are one. They might have to reinvest those funds at a relatively low yield if interest rates have gone down and thereby being exposed to reinvestment risk. Question 2 Answer: 9.95% Workings To calculate the YTC: On th...

FINANCE 405 - American River College. Midterm Exam. 50 MCQ + Worked Solutions. Midterm 1. Risk in a revenue-producing financing project can best be adjusted for by 2. A real estate investment has the following expected cash flows: $10,479 3. An analyst estimates the following return distribution for a stock: 4. Assuming error term is zero. Estimate the change in the return on the stock when the return on the S&P 500 index changes from 12% to 16%. 5. New Hampshire Services reported $2.3 million o...

Knopman Marks Securities Industry Essentials Flash Cards (SIE) Question and Answer 2023. Do the following Investment Companies/Products offer continuous share offering or fixed share counts? Mutual Funds Closed-End Funds UIT ETF Correct Answer: Mutual Funds: Continuous Closed-End Funds: Fixed UIT: Fixed ETF: Fixed What Term signifies that a share of common stock can be freely transferred, assigned, or delivered to another entity? a) Fungible b) Negotiable c)Portable d)Endorsable...

The notes go over the most basic concepts of bonds for novice learners

INV2601 ASSIGNMENT 2 S - The study-notes marketplace Call/Whatsapp or SMS 066 077 8000 for assistance with Investment, Finance and other modules. Question 1 Answer: Reinvestment risk Explanation Lack of coupon payments on a zero coupon bond eliminates reinvestment risk. Reinvestment risk is a type of risk that a bondholder is exposed to when they receive cash inflows of which coupon payments are one. They might have to reinvest those funds at a relatively low yield if interest rates ha...

This problem set is to help you review for the second midterm exam and the answers are provided at the bottom of this document for your reference. However, students should note that there is no guarantee that the actual exam will be similar to this problem set in length, format, or level of difficulty. To be fully prepared, you need to review the lecture materials, previous homework, and end-of-chapter problems. 1. A 10-year Treasury bond has an 8% coupon, and an 8-year Treasury bond has a ...