Calculate the current market price of the bond

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Reference no: EM132833091

Problem a. A 13 percent semi-annual coupon bond has 10 years to maturity and face value of tk. 1000, the rate of return is 11.5 %. Calculate the current market price of the bond and justify your findings if current market price of the bond TK. 1070.

Problem b. Briefly explain different types of corporate bonds with basic features. Identify opportunities and challenges to develop bond market in Bangladesh.

Problem c. A company has five stock in the portfolio and portfolio beta= 1.8, each stock has equal weight and the total value of the portfolio=250,000 tk. One month later, finance manager decided to sell 4th stock and replaced by a new stock which value =70000 tk and new stock beta =1.60, calculate the portfolio new beta.

Reference no: EM132833091

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