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:

Negative Charge

A type of electrical charge characterized by the presence of more electrons than protons in an atom or molecule.

Electron

A subatomic particle with a negative charge, fundamental to electricity and chemical bonding.

Light

Electromagnetic radiation that is visible to the human eye, with wavelengths approximately between 380 and 750 nanometers.

Particles

Small localized objects to which can be ascribed several physical properties such as volume or mass; often used in the context of physics to discuss components of atoms and molecules.