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Calculate the price of a 15-year bond

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Reference no: EM132525355

Question 1: Using semi-annual compounding, calculate the price of a 15-year bond which has a coupon of 10.5% and is priced to yield 8%. The bond has a par value of $1,000.

Question 2:

Assme you are given the following financial information:
Net profit margin is 15%;
Total assets is $25 billion;
EPS is $3.00;
Total asset turnover is 1.5;
Net working capital is $3.4 billion;
Payout ratio is 40%;
Current liabilities is $5 billion;
P/E ratio is 12.5.

Please calculate: Sales, Net profits after taxes, Current ratio, Market price of the stock, and Dividend yield.

Question 3:

-With the aid of a diagram, discuss the financial risks of investing in the Credit Linked Note (CLN) in the case of Minibond Series 27 offered by Lehman Brothers Asia Ltd. In Hong Kong.

-Should we allow the mini-bonds to be sold to retail investors in Hong Kong? Evaluate the potential risks for the bank to offer the structured financial products to Hong Kong retail investors.

-Examine the systematic risk of 2008 financial tsunami by using an example of 'too big to fail' financial institution.

Reference no: EM132525355

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