Question: How much would you pay for a 2 - year, % 1 0 coupon compounded annualy, 1 0 0 per value bond when similar bonds

How much would you pay for a 2-year, %10 coupon compounded annualy, 100 per value bond when similar bonds are yielding 10%?(10 points)
Using the follwing data calculate the dirty price of the bond. (10 points)
\table[[Clean price,915],[Acrued interest,40]]
A1+CP=DP-A1+A1
DP=AI+CP=915+40
What is the trading price?
=955
If you purchase a pure discount bond on August 23,2024, and it matures in two years on August 23,2026 with a face value of lon5,000, and YTM is 20%, what is the price of this bond? Assume annual compounding. (10 points)
The modified duration of the bond in the first question is 1.909 years. What is modified duration of this bond? If there is 1%(100 basis points) increase in bond's interest rate, what is the new market value of this bond with duration based approach. (10 points)
What is the value of stock that paid of 1 dividend recently per share with a constant growth rate of 10% and has a required rate of 15%? What is the value of growth? (10 points)
VOG=se-5P=22-6.67
=15.33
Free cash flow to firm is 400 million in year zero. It is expected to grow 4% annually: Total financial debt of the company is 1000 mil and cost of funds is 14%. What is the value of the campany? What is the value of the equity? If the number of shares is 100 million, what is the value per share? (10 points)
Using the following data calculate the expected return and standard deviation of this portfolio? (10 points)
Expected return of market portfolio
Expected return of market potrortfolio 0.25
Standard deviation of market porf 0.05
Risk free rate of return 0.05
Money to be invested in market portfolio
Money to be in Treasure bill
0.15
75 million
25 million
How much would you pay for a 2 - year, % 1 0

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