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Check my workings please. If its incorrect please state solutions Part (a) Please complete the following for Option 1 Number of years Interest per bond
Check my workings please. If its incorrect please state solutions
Part (a) Please complete the following for Option 1 Number of years Interest per bond Market value per bond Redemption value per bond Gross yield Total interest payable per year Part (b) Please complete the following for Option 2 Number of years Interest per bond Market value per bond Cash redemption Conversion value Redemption value Gross yield Total interest payable per year 5 E7.00 -100.00 94.00 -7.00% 87,500 5 E2.OO -EIOO.OO 104.00 E107.81 f107.81 -2.00% E25,OOO Company C Bond option 1 Type of bonds Coupon rate per bond Issue price per bond Redemption value Years until redemption Number of bonds being issued Company C Bond option 2 Type of bonds Number of bonds being issued Issue price per bond Coupon rate per bond Years until redemption/conversion Redemption in Cash Shares offered on conversion Current share price (pence) Forecast annual growth in share price (at a discount) (at a premium) Redeemable 7% EIOO.OO 6% 5 12,500 Convertible 12,500 EIOO.OO 2% 5 4% 30 310 3%
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