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a. A bond pays its first half-yearly $1,000 coupon payment in March 2022 and the bond matures on March 2025. Face value is $50,000. Coupon
a. A bond pays its first half-yearly $1,000 coupon payment in March 2022 and the bond matures on March 2025. Face value is $50,000. Coupon rate is 4% p.a. paid half-yearly. Current market yield is 3% p.a. What is the bond value on September 2021?
b. Of the following asset classes, which one would be expected to have the highest standard deviation of returns?
- government bonds
- corporate bonds
- shares
- bank bills
c. Which of the following would not be included as a cash flow in the analysis of the purchase of a new non-current asset?
- Reduction in total operating costs
- Reduction in inventory
- Book value of asset when project is complete
- Salvage value of asset when project is complete
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