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1. Three years ago Ramisa issued 10 year bonds that pays 5% coupon annually and sells for $1045. Calculate the YTM. Calculate current yield. 3+2=5
1. Three years ago Ramisa issued 10 year bonds that pays 5% coupon annually and sells for $1045. Calculate the YTM. Calculate current yield. 3+2=5 MARKS 2. A bond with 5 years to maturity and a coupon rate of 6% and face value of $20,000. If the required rate of return is 8%. Calculate the market price of this bond. 5 Marks 3. A stock's expected return has the following distribution: 5 MARKS Demand for the product Probability Rate of return Weak 0.1 (50%) Below average 0.2 (5%) Average 0.4 16% Above average 0.2 25% Strong 0.1 60% Calculate the stocks expected return, standard deviation and CV
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