Vector Companys broker has come up with two bonds A B Face value of both the bonds is $1,000 Maturity of bond A is 5years and that of B is 8years The yield to maturity is 12 Bond A has a coupon rate of 9 paid annually and bond B has a coupon interest rate of 12 , paid semi annually Calculate the selling price for each of the bond The company has $500, 000 to invest By using your judgment on the basis of their prices, work out how many of either one could the company purchase if she were to choose it over the other Calculate the annual interest income of each bond and the number of bonds, the company could buy with the amount of $500, 000 Does the yield to maturity and current yield of a bond differ from each other or same How stock valuation differs from bond valuation

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Question: Vector Companys broker has come up with two bonds: A &B. Face value of both the bonds is $1,000. Maturity of bond A is 5years

Vector Companys broker has come up with two bonds: A &B. Face value of both the bonds is $1,000. Maturity of bond A is 5years and that of B is 8years. The yield to maturity is 12%. Bond A has a coupon rate of 9% paid annually and bond B has a coupon interest rate of 12%, paid semi-annually.

Calculate the selling price for each of the bond.
The company has $500, 000 to invest. By using your judgment & on the basis of their prices, work out how many of either one could the company purchase if she were to choose it over the other?
Calculate the annual interest income of each bond and the number of bonds, the company could buy with the amount of $500, 000.
Does the yield to maturity and current yield of a bond differ from each other or same?
How stock valuation differs from bond valuation?

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