Content FI5403-NZF Take Text: Final Exx: X BbFI5403 1. Grimme Inc. Exp: X The Junior Achiex Chegg Search The Junior Achi x Beatrice wants to learn.senecacollege.ca/webapps/assessment/take/take.jsp?course assessment_id=_453095_1&course_id=_658949_1&content_id=_13443435_1&question_num_9x=0&toggle_state=gShow&step=null * Question Completion Status: 13 Question y 50 70 80 10 120 130 20 21 20 points Saved 1. Beatrice wants to buy one of the bonds below. Calculate the price she would have to pay. Assume both bonds pay interest semi-annually and comparable bonds yield 7%. Please show all calculations and calculate to 2 decimal places. (5 marks) Bond Coupon Rate Maturity Price? 10,000 ABC 5.0% 5 years 10,000 DEF 5.0% 10 years 2. Recalculate the price of each bond if current increase rates increase by 2 percentage points. (5 marks) Bond Coupon Rate 10,000 ABC 5.0% Maturity 5 years Price? 10,000 DEF 5.0% 10 years 3. Explain the impact of the increase in interest rates on the price of each bond. (4 marks) 4. Name and explain, providing an example for each, 3 risk factors that affect the required return on a corporate bond. (6 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Assignment 2.pdf Paragraph Arial 10pt A 2 v Tx *** Show all 2:50 AM 4/11/7007