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Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from ea bond. All bonds pay annual

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Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from ea bond. All bonds pay annual coupon Bond Number of Bonds Type Coupon rate YTM Maturity Face Value A 29 Discount Bond 5.7% 7.2% 1000 B 21 Par Bond 2000 C 28 Premium Bond 9.0% 6.4% 3000 19 years 16 years 18 years Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock. Stock Dividends Type Number of Stock 2300 2100 Growth X Dividends 0 Dividends 1 Y Required Retum 11% 16% 3.5 Zero Growth Constant Growth Constant Growth Z 3% 1900 1.8 12% 5% 2 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks

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