Question
1 : An investor purchased a short-term security with a face value of $515,697 and term to maturity of 180 days when it was trading
1 : An investor purchased a short-term security with a face value of $515,697 and term to maturity of 180 days when it was trading at yield of 6.8%p.a.
He then sold the security 10 days later when the trading yield in the market decreased to be 3.99% p.a.
What is his capital gain realised from this investment ?
2 : An investor purchases a Bank-Accepted Bill (BAB) with a face value of $307,344 and term to maturity of 90 days when it is trading at yield of 5.85%p.a.
What is the price of BAB today?
3 : An investor purchases a short-term security with a face value of $376,257 and term to maturity of 180 days when it is trading at yield of 5.99%p.a
What is the price of the security today?
Step by Step Solution
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Step: 1
1 To calculate the capital gain realized from the investment we need to find the difference between ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
