Question: please help me for question 7, 8 and 9. thanks! Question 7 Magic House has bonds on the market that is paying coupons semi-annually. Each
please help me for question 7, 8 and 9. thanks!

Question 7 Magic House has bonds on the market that is paying coupons semi-annually. Each bond is trading at a market price of $895.42, has a face value of $1,000 and mature in 12 years. The yield to maturity is 8.4 percent. What is the coupon rate of the bonds? Question 8 A company has included stock options as part of the manager's compensation packages. The current stock price of the company is $40. Each stock option gave the manager the option to buy a stock of the company at $45 two years later (If the manager exercise the option, the manager will pay $45 to buy the share of the company regardless of the market price two years later). Explain how this arrangement can benefit the shareholders of the company. Question 9 Sunlife Investment is trying to sell you a 6-year investment policy. If you decide to invest in this policy, you will need to pay $4,000 immediately, $6,000 at the end of year 2 and $8,000 at the end of year 4. The investment policy will then pay you $20,000 at the end of year 6. The interest rate that you require from such investment is 4.8 percent a year, compounded annually. Will you invest in this policy
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