Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You have invested in a commercial bond issued by FHL, listed on SPX. The bond has a face value of $150,000 and pays coupons every four months at a rate of 8% p.a. The bond matures on 30th April, 2025. Due to some unforeseen circumstances, you urgently need to liquidate the bond and decide to sell the bond in the secondary market today, 18th June, 2020. Current yields on similar bonds are 9.5% p.a.
Required:
(Show all working else penalties will apply. Exchange rates should be rounded off to 4.d.p., whereas all other calculator-values are to be rounded off all to 2d.p. Clearly label your answers with corresponding question number and/or its associated parts.)
a. Calculate the price of the bond if it is held to maturity.
b. Calculate the price of the bond if it was sold today.
c. Assume you sold the bond today to Investor X. On 26th January, 2025 Investor X resold the bond in the secondary market to Investor Y. At the time of sale, current yields on similar bonds were 7% p.a. Calculate the price that Investor Y paid for the bond.
What is the forward or expected spot exchange rate among the 2 currencies?
What is the difference between market value and book value? Which is more relevant for financial decisions? Which is more relevant for historical analysis purposes?
What would be the FV if the interest rate is a simple interest rate? What would be the FV if the interest rate is a compound interest rate?
1. What is the Macaulay duration of a 5.4 percent coupon bond with nine years to maturity and a current price of $1,055.40? What is the modified duration?
a) What is the cost of equity under CAPM? b) What is the appropriate WACC for this opportunity?
Computation the expected amount of disposable income of project and what is the expected amount of disposable income the landlord will have facing this risky situation? Is this a fair gamble.
Find a real queuing problem and show how you would begin to analyse it. How can simulation help with your problem? How does your problem compare with the queuing problems that managers have solved in other circumstances?
You purchased 250 shares of General Motors stock at a price of $87.36 two years ago. You sold all stocks today for $75.61. During this period the stock paid.
A random survey was done among students going into the school cafeteria to find out their preference for pizza or hamburgers. Of the 200 students selected?
using spot and forward exchange rates the spot exchange rate for the canadian dollar is can 1.14 and the six-month
How can the management get away with rejecting an offer that is clearly in the best interests of the shareholders?
Is it true that firm value will be unaffected by dividend policy? Discuss and a numerical example will be helpful.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd