Asset prices rose since April 2020 due to the resolution of the uncertainty related to the COVID-19 pandemic. Use the basic asset pricing formulas to rationalize the performance of asset prices.
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Asset prices rose since April 2020 due to the resolution of the uncertainty related to the COVID-19 pandemic.
Use the basic asset pricing formulas to rationalize the performance of asset prices.
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- Consider an asset that you purchase for $145,153. Its nominal resale value after 6 years of ownership is $34,055. At that time you plan to sell it and invest the proceeds elsewhere. What is the net present cost to you of holding this asset if the nominal discount rate is 6%?Treasury bans Bain and Co. from public sector contracts for a decadeNational Treasury has banned consultancy Bain & Co. from tendering for public sector contracts for a period of 10 years for engaging in "corrupt and fraudulent practices" related to its contract at the SA Revenue Service (SARS).The ban will run from 5 September 2022 until 4 September 2032."This restriction has been published on the National Treasury website and database for restricted suppliers. The restriction will apply to any other contract for services awarded to Bain & Co in the public sector."Treasury said it was, in collaboration with SARS, "in the process of restricting Bain & Co, South African Directors through a phased approach".The decision to ban the company comes seven weeks after the UK government banned it from competing for state contracts for three years. Using the information in the article, and additional research, conduct a macro/remote environmental analysis of Bain and Company using…What will be Relationship between Excess Supply/Demand Conditions, Interest Rates, Investor Returns, and “Going-In” Cap Rates
- Repo and reverse repo trades are NOT used to options Fund purchases of bonds Earn short–term interest Implement short-selling strategies Fund import/export activitiesThe adjustments necessary to convert financial prices to economic values are divided into three steps. Discuss the three steps using suitable examples.Which of the following is NOT TRUE about bond valuation? *a. Bonds can sell either for a discount or premium.b. The value of the bond does not necessarily equal or the same as its price.c. Bonds pays its cash flows through periodic interest payments and principal.d. None of the choices.e. Bond valuation is used to calculate the worth of the bond compared to its price
- There are many tax rules and regulations you should be aware of when investing-whether it be in stocks; bonds; mutual funds; real estate; or collectibles such as artwork, antiques, gems, memorabilia, stamps, and coins. Capital gains are proceeds derived from these types of investments. Unless they are specified as being tax-free, such as municipal bonds, you must pay capital gains taxes on these proceeds. Capital gains are taxed in one of two ways. If the investment is held for one year or less, this is considered short-term and is taxed as ordinary income at your regular income tax rate. As this is written, if the investment is held for more than one year, it is considered long-term and qualifies for various tax discounts, as follows for single taxpayers with earnings as shown below. Stocks Held Capital Gains Rates Up to $38,700 $38,700–$426,700 Over $426,700 Over 1 year(long-term) 0% 15% 20% (a) If you are in the 25% tax bracket for ordinary income and have a 15% capital…Liquidity is best defined as the direct exchange of goods and services for other goods and services. anything that is accepted in exchange for goods or for the payment of debt. the ease of converting an asset into cash. money with no intrinsic value. Identify which asset is the most liquid. real estate checking account stock certificate 6 month certificate of depositSuppose that the one-year treasury rate is 0.25% per year. What should be the one-year forward price for the asset X if the spot price is $250?
- The demand curve and supply curve for one-year discount bonds were estimated using the following equations:Bd : Price = - 2/5 Quantity + 990Bs : Price = Quantity + 500As the stock market continued to rise, the Federal Reserve felt the need to increase the interest rates. As a result, the new market interest rate increased to 19.65%, but the equilibrium quantity remained unchanged. What are the new demand and supply equations? Assume parallel shifts in the equations.Which of the following is NOT TRUE about bond valuation? *a. Bonds can sell either for a discount or premium.b. The value of the bond does not necessarily equal or the same as its price.c. Bonds pays its cash flows through periodic interest payments and principal.d. None of the choices.A policy portfolio has 50% allocated to UK equity and 50% to a global developed market. The manager has invested 55% in the UK equity, 35% in global developed markets and 10% in emerging markets. The returns of the markets were as follows: UK equity 15% Global developed market 7% Emerging market 5% Calculate and explain the contribution to the portfolios return from the asset managers allocation decision