Bethany purchased a coupon bond for $950 today. She has the following expectation on the bond price in one year. Probability Bond Price 3096 $ 1020 50% $980 20% $850 The bond paid an annual coupon of $30 three months ago. Which of the following can be used to find the expected return of the bond over the next 12 months for Bethany? (Only one correct answer) (2 marks) 010.3 1020+0.5*980+0.2*850-950)/950 00.3"(1020-950/950+0.5*(980-950/950 +0.2" (850-950/950 00.3-1020/950+0.54980/950+0.2 850/950+30/950 00.3"(1020-950)/1020+0.5"(980-950)/980+0.2"(850-950)/850 00.3"(1050-950/950 +0.5*(1010-950/950+0.2"(880-950)/950 The expected return is % (Round your answer to a percentage of 2 decimals without the 96 symbol. Eg, if you answer is 0.12345, you should input-12.35") (1 mark) Blake purchases a share at the market price today. He has the following expectations on the total return of the share over the next year. Probability Share return 35% 30% 4596 10% 20% -20% The overall expected return for the share over the next year is 11%. Which of the following can be used to calculate the standard deviation of the share over the next year? (There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.) Select one or more: O a. % - 30%+ 45% - 10%? + 20%. (-20%)2 - 11%? c. b. None of the options can be used to calculate the standard deviation of the bond over the next year. 35%. (30% -11%)2 + 45%. (10% - 11%)? + 20%. (-20% - 11%) d. 35% - 30% + 45% 10% + 20%. (-20%) 35% 30%? + 45% - 10%2 + 20%. (-20%)? e. A company needs to raise $60 million (This is the net of cost amount required by the company) in its IPO. The total of underwriting fee and the out-of- pocket expenses are 5% of the total amount raised in the IPO. The market share price increased by 20% right after the IPO. a) Calculate the total amount need to be raised in the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) b) Calculate the total of underwriting spread and the out-of-pocket expenses for the IPO. (Round your answer to the nearest dollar. Do not include the symbol. Do not use comma separators. E.g. 123456) c) Calculate the total underpricing of all shares issued in the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) d) Calculate the total cost for the IPO. (Round your answer to the nearest dollar. Do not include the 5 symbol. Do not use comma separators. E.g. 123456) A company is doing a share offering underwritten by an investment bank. The company plans to issue 650,000 shares at a market price of $23.7 per share. The investment bank offers stand-by underwriting at a fee of 6% of the total amount raised. a) If the company receives subscriptions for 100% of the total shares offered, calculate how much the company would receive from the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) b) if the company only receives subscriptions for 95.5% of the total shares offered, calculate how much the company would receive from the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) If the company only receives subscriptions for 95.5% of the total shares offered, calculate how much the investment bank would receive from the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456)