Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Due: December 3/2023 11:59 PM (Sunday) Note: Submit into the drobox online (Responses should be typed/ Figures can be hand draw). Do not plagiarism
Due: December 3/2023 11:59 PM (Sunday) Note: Submit into the drobox online (Responses should be typed/ Figures can be hand draw). Do not plagiarism it goes through plagiarism software! Submit as single Excel workbook. Objective: To apply concepts taught in class (Lecture 6-8) to the questions posed below. 1) Create an input table and calculate; (1) PV price and (2) if the bond is trading at a premium or discount. Use numbers to support your answer. State any assumptions you might need to make. Assume the bond was issued on Jan 1, 2023.[15 Marks] a) This analysis shows that if 10% is the annual market rate for the Apple corporation, the maximum price that buyers will pay (also the minimum price the issuer will accept) is A. The coupon rate is quoted at 11%. b) Create a bond schedule (similar to the class example) and in detail describe; (1) Cash interest paid, (2) Period interest expense, (3) Discount/premium amortization. State any assumptions you might need to make. [15 Marks] c) Create a journal entry for beginning of Q3 2023. Describe if this bond has yielded a positive benefit for the buyer. [15 Marks] 2) Create 3 different portfolios to investigate the impact of long- term & short-term investment structures: a) (1) only real estate, [12 Marks] b) (2) only equities and bonds, [12 Marks] c) (3) mix of equities, bonds, and real estate [12 Marks] d) Analyze which portfolio yields the best return for your money (use ROI) and explain why. Use a minimum of 4 investments per portfolio and state any assumptions. [14 Marks] 3) Write 3 interesting facts/lessons you have learnt in the course so far? [5 marks]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started