Question: PLEASE ANSWER ALL THE QUESTIONS. THEY ARE THE SAME PART OF ONE QUESTION A) Today is December 31, 2020. Mr. Chowdhury bought a bond that

PLEASE ANSWER ALL THE QUESTIONS. THEY ARE THE SAME PART OF ONE QUESTION

A) Today is December 31, 2020. Mr. Chowdhury bought a bond that was issued by Herath Corporation 15 years ago (December 31, 2005). This $1000 face value bond and a coupon rate equal to 12 percent, will mature in five years from today. Interest is paid semi-annually; the next interest payment is scheduled for 6 months from today. If the required rate of return from this type of bond is 10 percent, what is the current market value of the bond? What was the value of this bond when Abdullah bought it 15 years ago? (6 Marks)

B) Based on your understanding of the five types of stock market transactions, answer with proper logic and example Which transaction will result in the maximum amount of new capital for the company? Why? and also Which transaction will result in a minimum amount or zero new capital for the company? Why? (4 Marks)

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