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If interest rates fell after the investor purchased the bonds, the market value of each bond would likely increase. This is because existing bonds with a higher yield (8 percent) become more attractive compared to new bonds issued at lower rates, leading to increased demand and prices for the existing bonds. The investor could potentially realize a capital gain if she decided to sell the bonds at this new, higher market value.
What else can I help you with?
A pays interest to the investor.?
corporate bond
A what pays interest to the investor?
corporate bond
How can SEBI protect the interest of investor in securities?
1962
What is the meaning of CD coupon frequency and how does it impact the overall value of the investment?
The CD coupon frequency refers to how often the interest on a Certificate of Deposit (CD) is paid out to the investor. A higher coupon frequency means the investor receives interest payments more frequently, which can increase the overall value of the investment by allowing the investor to reinvest the interest sooner and potentially earn more interest over time.
How does an investor earn money when buying bonds at discount?
An investor earns money when buying bonds at a discount by receiving interest payments, known as coupon payments, which are typically based on the bond's face value. Additionally, if the investor holds the bond until maturity, they will receive the full face value of the bond, resulting in a capital gain since they purchased it for less than its face value. The difference between the purchase price and the face value, along with the interest payments, contributes to the overall return on investment.
What is uncapitalised interest?
It is interest that is paid separately. For an investor, it is paid out to the investor and not rolled into the investment.
A what pays interest to the investor?
corporate bond
A pays interest to the investor.?
corporate bond
How can SEBI protect the interest of investor in securities?
1962
How does an investor get ownership interest in a company?
by purchasing shares in the company
What is repaid to the investor on a bond's maturity date?
The principle and interest.
A share of IBM stock is purchased by an individual investor for 75 and later sold to another investor for 125 Who profits from this sale?
It is split between IBM and the Investor. This is a tricky question, because the selling investor (investor 1) makes most profit, but IBM does receive some compensation.
When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment the investor must?
When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must a. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. b. notify the issuer and request that a special payment be made for the appropriate portion of the interest period. c. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date. d. do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.
What is the meaning of CD coupon frequency and how does it impact the overall value of the investment?
The CD coupon frequency refers to how often the interest on a Certificate of Deposit (CD) is paid out to the investor. A higher coupon frequency means the investor receives interest payments more frequently, which can increase the overall value of the investment by allowing the investor to reinvest the interest sooner and potentially earn more interest over time.
What is Contractual interest rate on a bond?
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
How does an investor earn money when buying bonds at discount?
An investor earns money when buying bonds at a discount by receiving interest payments, known as coupon payments, which are typically based on the bond's face value. Additionally, if the investor holds the bond until maturity, they will receive the full face value of the bond, resulting in a capital gain since they purchased it for less than its face value. The difference between the purchase price and the face value, along with the interest payments, contributes to the overall return on investment.
What organization protects the interest of investors?
The Securities and Exchange Comissions (SEC) and the state Securities Boards are the regulatory bodies protecting investors interests. There are also many private investor groups and unions protecting the interest of their investor members.
