Question: Please help with following MCQ: question 1 Your client is struggling to value a bond and asks you for help: The bond is traded on

Please help with following MCQ:

question 1

Your client is struggling to value a bond and asks you for help: The bond is traded on the JSE Debt Exchange, has a par value of R1 000, a coupon rate of 12%, and matures in 6 years. A bond dealer has told your client that the effective annual yield is 14.49%. The price the bond should sell for today is . Choose the closest answer. Q A. R969 0 B. R1077 O (3. R1 084 O D. R921 A bond with R1 000 par value is listed on the JSE Debt Exchange. The yield to maturity is 11% and the bond matures in 7 years. The value of the bond today will be if the coupon rate is 8.8%. Chose the closest answer. Q A. R895 0 B. R923 0 c. R1 113 O D. R1 076 A company is expected to have EPS of R3.60 in the coming year. The expected ROE is 10%. An appropriate required return on the share is 11%. If the firm has a dividend pay-out ratio of 40%, what is the current value of the share? Choose the closest answer. Q A. R31 0 B. R32 0 c. R43 0 D. R29

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