3- Suppose that a portfolio management company manages an investment fund. The fund manager observes a...
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3- Suppose that a portfolio management company manages an investment fund. The fund manager observes a bond in the market and intends to add it to the fund portfolio. The bond has a 100.000 TL par value, 10% coupon rate (coupon payments are annual) and a 6-years maturity. The business model is to "hold-to-maturity". The company purchases the bond at the beginning of the year when the market yields are 8%. After exactly 3 years of investment, market yields increase to 12%. What would be the profit or loss amount in the income statement for that third year? a) 1.427,92 TL loss b) 1.470,06 TL profit c) 8.529.94 TL profit d) 10.000 TL loss 3- Suppose that a portfolio management company manages an investment fund. The fund manager observes a bond in the market and intends to add it to the fund portfolio. The bond has a 100.000 TL par value, 10% coupon rate (coupon payments are annual) and a 6-years maturity. The business model is to "hold-to-maturity". The company purchases the bond at the beginning of the year when the market yields are 8%. After exactly 3 years of investment, market yields increase to 12%. What would be the profit or loss amount in the income statement for that third year? a) 1.427,92 TL loss b) 1.470,06 TL profit c) 8.529.94 TL profit d) 10.000 TL loss
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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