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1) Create an input table and calculate; (1) PV price and (2) if the bond is trading at a premium or discount. Use numbers

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1) Create an input table and calculate; (1) PV price and (2) if the bond is trading at a premium or discount. Use numbers to support your answer. State any assumptions you might need to make. Assume the bond was issued on Jan 1, 2023. [15 Marks] a) Input Number to Put in Calculator N=5 years (quarterly) VY market rate (annual) PMT FV PV Number to Put in Calculator =X =Y =Z 50,000 CPT PMT = A This analysis shows that if 10% is the annual market rate for the Apple corporation, the maximum price that buyers will pay (also the minimum price the issuer will accept) is A. The coupon rate is quoted at 11%. b) Create a bond schedule (similar to the class example) and in detail describe; (1) Cash interest paid, (2) Period interest expense, (3) Discount/premium amortization. State any assumptions you might need to make. [15 Marks] c) Create a journal entry for beginning of Q3 2023. Describe if this bond has yielded a positive benefit for the buyer. [15 Marks] 2) Create 3 different portfolios to investigate the impact of long-term & short-term investment structures: a) (1) only real estate, [12 Marks] b) (2) only equities and bonds, [12 Marks] c) (3) mix of equities, bonds, and real estate [12 Marks]

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