Question: Old MathJax webview please solve this 3 question please solve 1,2,3 1. If a 1000 taka face value bond paying 18% coupon semi-annually maturing in

Old MathJax webview

Old MathJax webview please solve this 3 question please solve 1,2,3 1.

please solve this 3 question

please solve 1,2,3

1. If a 1000 taka face value bond paying 18% coupon semi-annually maturing in 15 years is selling for 1220 taka when interest rate is 12%. Should you buy this bond? Find YTM of this bond. 2. A) If a 1000 taka face value bond pays 10% coupon with 10 years maturity then find YTM of this bond given interest rate is 10%. B) If a zero coupon bond is selling for 99 taka when the face value is 1000 taka maturing in 20 years. Would you buy it if the rate of return is 14%? 3. If a stock pays 6.6 taka dividend which is expected to grow at 12% for 4 years and then 9% for three more years and then a constant growth rate of 6% forever. If cost of equity is 10% then how much should you pay for this stock

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