Question: Please help require a,b,d !!! Q2 Question 2 (11 marks) a) TV Investment LLP has issued a callable (at par) fiver-year, 9% coupon bond with

Please help require a,b,d !!! Q2

Please help require a,b,d !!! Q2 Question 2 (11 marks) a) TV

Question 2 (11 marks) a) TV Investment LLP has issued a callable (at par) fiver-year, 9% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $104 per $100 face value. What is the bond's yield to call? (3 marks) b) You are investment manager of TV Investment LLP, and you heard your client saying that Convertible bond is hybrid instruments (debt and equity in nature). Explain how Convertible bond could be hybrid instruments. (3 marks) c) You are considering investing in a saving bond that will pay $30,000 in 10 years. If the competitive market interest rate is fixed at 12% per year, what is the bond worth today. (3 marks) d) How is bond line a loan? (2 marks)

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