How much is the present value of the bond

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Problem 1: Naivas Co. Ltd wishes to issue a Kshs 60,000, 4-year, 10% bond. The interest is payable annually. Unfortunately, the market rate has risen to 12%. Clearly, the bond must sell at a discount. But how much is the present value of the bond? (Hint: The Present Value Annuity Factor, PVIFA = {1 - (1+r) - n }/r and Present Value Interest Factor, PVIF = 1/(1+r)n )

Problem 2: Describe the FOUR different types of Preference shares with reference to participation, dividends, convertibility and redemption.

Reference no: EM133006987

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