a) A bond of Rs1000 @ 10% is selling for Rs 900, calculate the yield of Bond.
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- a) A bond of Rs1000 @ 10% is selling for Rs 900, calculate the yield of Bond. Would you advise to purchase this bond?
b) Mr. Dhansu Singh made an investment in 12% bonds, face value of Rs. 100 maturity period is 5 years. The opportunity cost rate is 12%. Bonds will be realised after at a premium of Rs 20/ per bond. Compute the intrinsic value of this bond. Would you prefer to purchase this bond at Rs. 115/ ?
- From the following information calculate present value of equity share of Gabbar Ltd.
Face Value Rs. 100
Dividend Rs 12
Expected rate of share after one year Rs 130 Rate of Return 10%
- From the following information compute value of equity share of Sonakshi Ltd. using CAPM
Face Value Rs.20
Dividend Paid Rs. 5 per share
Beta 1.3
Market index 15%
Growth Rate of Company 5%
Related Book For
International Business and the New Realities
ISBN: 978-0136090984
2nd Edition
Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger
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