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( a ) According to the characteristics of bonds A to D , explain and name the bonds A to D . ( 8 marks
a According to the characteristics of bonds A to D explain and name the bonds A to D marks
b Suppose the yield to maturity of bond D is and face value equals to $ calculate the current market price of bond D Please round the answer and intermediate results to decimal places marks
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You are analysing a US listed company, Countless Co and you find that Countless has issued both bond and stocks years ago.
a Explain TWO differences between issuances of bond and stock in raising capital on both the company and the investors. marks
b Suppose Countless Co is expected to increase dividends by in year one and by in year two. After that, dividends will increase at a rate of per year indefinitely. If the last dividend just paid was $ and the required return is Calculate the price of the Countless Co marks
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