A CD with a Face Value of USD 50,000,000

question 3

Multiple Choice

A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

• A) +USD 373,599.00
• B) +USD 186,099.00
• C) -USD 1,400.99
• D) Nil

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Definitions:

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting economic health and living standards.

Purchasing Power

The capacity of an individual or group to buy goods and services, often considered in terms of the real value of money or income in relation to prices.

Wealthy Households

Families or domestic groups with a high net worth, possessing substantial financial resources and assets.

Generational Cohorts

Groups of people born in the same time period who share similar cultural experiences, attitudes, and values.