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assigment Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the
assigment
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 each bond. All bonds pay annual coupon Bond Number of Bonds Type Coupon rate YTM Maturity Face Value A 19 Discount Bond 5.2% 7.0% 3000 B 24 Par Bond 1000 15 Premium Bond 9.3% 6.7% 3000 17 years 15 years 14 years 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 Type Required Growth Dividonds 0 Dividends 1 Stock Return 1600 Zero Growth 15% 3.8 Y 1600 Constant 15% 2% 1.8 Growth 2500 Constant 11% 5% 2 Growth N 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 Type Required Growth Dividends 0 Dividends 1 Stock Return X 1600 Zero Growth 15% 3.8 Y 1600 Constant 15% 2% 1.8 Growth 2500 Constant 11% 5% 2 Growth N Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount Chek Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Subm Step by Step Solution
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