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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,

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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 Type YTM Maturity Number of Bonds 21 Coupon rate 4.6% Face Value 2000 A 7.5% 12 years B 16 Discount Bond Par Bond Premium Bond 15 years 18 years 2000 1000 29 9.0% 5.9% 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: Stock Growth Number of Stock 2900 Required Return 16% Dividends 0 3.4 Dividends 1 X Dividends Type Zero Growth Constant Growth Constant Growth Y 2900 11% 6% 1.8 2 N 1900 14% 4% Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount

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