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Answer plz . Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After
Answer plz .
Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from cach bond. All bonds pay annual coupon Bond Number of Type Coupon YTM Maturity Face Bonds rate Value A 16 Discount 4.9% 7.5% 15 years 1000 Bond B 26 Par Bond 12 years 3000 18 Premium 10.6% 5.7% 15 years 2000 Bond 1 Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock Stock Number of Dividends Required Growth Dividends Dividends Stock Type Return 0 1600 Zero 16% 3.8 Growth Y 2600 Constant 10% 2% 1.8 Growth Z 2300 Constant 2 13% 2% Growth Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount Step by Step Solution
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