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4. Bond Valuation Pof Co is a large scale manufacturing company with AAA credit rating Porco's CFO, Daniyal Khan, is looking to sell new short-term

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4. Bond Valuation Pof Co is a large scale manufacturing company with AAA credit rating Porco's CFO, Daniyal Khan, is looking to sell new short-term debt through a bond Sale Me Khan is looking to retire this debt in 5 years, ie the maturity on the bond issue will be 5 years He has not yet decided the coupon rate or the coupon frequency for these bonds Aleena Shaikh is a research associate at MG Securities Ms Shaikh is working on a research report to make a recommendation to buy POFCo bonds for her clients. Before she can make a recommendation, her senior research associate has asked her to run a few ofterent scenarios under which POF Co can issue bonds. This is standard practice for any research report written by MG Securities MS Shaikh has found that existing bonds from AAA rated large-scale manufacturing agencies have a deep and liquid market. There are plenty of other similar bond floats with comparable financial exposure and credit rating On average, investors demanda YTA of 6.0% annual based on semi-annual coupon payments from similar bond poats Aleena decides to use this YTM to discount Porco's bonds 1. Pof Co announces the bond with zero percent coupon (called a zero-coupon bond) what will be the price of a single bond? place, no Rs or commas) (please round to 1 decimal 2 Pof Co announces the bond with 6 percent semi-annual coupon, what will be the price of a single bond? commes (please found to 1 decimal place no Rs or -3 F Porco announces the bond with 6 percentual coupon what will be the price of a single bond (please round to 1 decimal place, no Rs or commas

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