ost of capital versus investor yields. Also, explain the municipal bond interest in term
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In detail, explain corporate bond interest in terms of cost of capital versus investor yields. Also, explain the municipal bond interest in terms of investor yields.
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- explain the following investments terms. d) Government Bonds e) Stocks f) Present ValueThe cash interest payment a corporation makes to its bondholders is based on ________. A. the market rate times the carrying value B. the stated rate times the principal C. the stated rate times the carrying value D. the market rate times the principalExplain each of the investment instruments stated below that offered by financial institutions. These are the investment instruments you like to invest. Explain and justify why. 1. stocks 2. bonds 3. Annuities
- which of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stockWhat are municipal bonds? What characteristics makes them especially attractive to high-income investors? What kinds of expenses do mutual funds incur? How are expense ratios calculated?Which one of the following is short-term source of working capital finance? Retained Profit Factoring service Non-convertible bond Retained profit and factoring service.
- REQUIREMENTS: 1. How much is the cost of equity using the capital asset pricing model? 2. How much is the cost of equity using the bond plus risk premium?1. Differentiate stocks from bonds; and stockholders from bondholders. 2. Explain the components of capital (retained earnings, bonds, preferred equity and common equity) relative to weighted average cost of capital. 3. What are the factors affecting cost of debt? Define or explain each of them.Capital gearing ratio indicates the relationship between A. assets and capital B. loans and capital C. equity shareholders fund and long term borrowed funds D. debentures and share capital