A capital gain occurs when the
A) coupon rate increases.
B) current yield increases.
C) price of an asset increases.
D) yield to maturity increases.
C
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If the inflation rate falls, what will happen to the budget deficit?
a. It will rise, because government spending will rise. b. It will rise, because interest payments will rise. c. It will fall, because tax receipts will increase. d. It will fall, because interest payments will fall.
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
Given the scenario described, if the market price of grills is $300, who participates in the market? A. Only Abe, Butch, and Collin participate. B. Only Collin and Daniel participate. C. Only Abe and Butch participate. D. Only Daniel participates.