a.
To calculate: The current
Introduction:
Bond:
It is a long-term loan borrowed by corporations, organizations, or the government for the
purpose of raising capital. It is issued at fixed interest depending upon the reputation of the
corporation and also termed as fixed-income security.
b.
To calculate: The percentage loss or gain, if the bond was bond at par value by Ms. Robinson.
Introduction:
Profit or Loss:
It refers to the gain or loss arising from the commercial transactions during a specified period of time and used to assess the company’s financial performance.
c.
To calculate: The percentage return if the bond is bought by Mr. Pinson at current market value and keeps it till maturity.
Introduction:
A rate that shows the net profit or loss, an investor earns or loses on the investment over a particular time period is termed as the rate of return.
d.
To explain: The reason why the percentage gain is more than the percentage loss.
Introduction:
Profit or Loss:
It refers to the gain or loss arising from the commercial transactions during a specified period of time and is used to assess the company’s financial performance.
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Loose Leaf for Foundations of Financial Management Format: Loose-leaf
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