Problem 2

In August 2017, a company launched a corporate bond with a nominal value of IDR 25 million. The bonds will mature in August 2025. The coupon for the bonds is 12%, payable semi-annually in February and August. If the investor requires a return of 10%, calculate the value of the bond in February 2021! Problem

Problem 3

a. The company owns preferred stock with a nominal value of Rp.15,000 and promises dividends of 12% per annum. Currently, the market price for the preferred stock is Rp.20,000. If the return that investors want is 8%. What is the projection of the company's preferred stock?

b. A company plans to pay dividends to its common stockholders. The amount of the last dividend distributed was IDR 2,500 per sheet. In the previous period, the return on equity earned by the company was 16% and the dividend payout ratio was set at 75%. If the investor's desired rate of return is 12%, calculate the projected price of the company's common stock!