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Can I Ask About this A 5 year Putable Bond giving a coupon of 10% per year with semi-annually payment. The option can be exercise

Can I Ask About this

  1. A 5 year Putable Bond giving a coupon of 10% per year with semi-annually payment. The option can be exercise in the 3rd year with the strike price 110%. In the 3rd year, the market interest rate equals to 6%. Say the risk premium from investor atleast 2%, how much the yield of the put option are being executed? is it profitable or not?
  2. Let say we are going to analyze some stock. In the market, a government bond yield equals to 7.5% with repo-7days rate 6.75%. The tax is about 25% and the market return equals 25%. If some stock has a beta about 1.2 and the realized return based on historical data equals to 20%/year, how much is the expected return of that stocks? and should we buy it or not?
  3. An Investor try to split its investment to two types of assets (let say stocks A and D). Fund being invested to Stock A equals to 55% and 45% to stock D. Also, the stock A have a return 20% and stock D have 18% of return. The varians from stock A equals to 961% and for stock Bis 529%. They have correlation 0.25. How much is the expected return and the risk of portfolio for both stocks. Also what is the summary can be taken from that data?

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