How much you are ready to pay for reliance zero coupon

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Reference no: EM132655678

a. How much you are ready to pay for Reliance Zero coupon bond INR 1,000 (face value) with the maturity period 10 years and YTM 8%.

b. How much you are ready to pay for Tata's 10 percent coupon bond of INR 1,000 (face value), maturity period 5 years, and YTM 8%. If you buy this bond at INR 1000, would it be a beneficial deal?

c. Serum institute expects to pay dividends INR 15 per share for next two years. If your required rate of return is 10 percent and you expect to sell the shares after two years for INR 100, how much per share you would be willing to pay today?

Note: Please provide excel sheet of your working, if used.

Reference no: EM132655678

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