Calculate the Capital Gain or Loss That Results When a Parcel

question 82

Essay

Calculate the capital gain or loss that results when a parcel of 90 day NCDs with a face value of $50 million is bought at 3.25% p.a.and sold later the same day after yields have fallen to 3% p.a.

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Definitions:

Bran Flakes

A type of breakfast cereal made from bran, which is the hard outer layer of cereal grains.

Food

Any nutritious substance that people or animals eat or drink, or that plants absorb, in order to maintain life and growth.

Concrete

Refers to real, tangible objects or substances, as opposed to abstract concepts or qualities.

Emotion

A complex state of feeling resulting in physical and psychological changes that influence thought and behavior.