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Explain and answer each bullet point in detail for the attached file please. FIN 300 - Exam 2 - Bonds - Ch. 8 o Quantitative

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Explain and answer each bullet point in detail for the attached file please.image text in transcribed

FIN 300 - Exam 2 - Bonds - Ch. 8 o Quantitative problems - How do you calculate Price of a semi-annual coupon-paying bond? Price of an annual zero-coupon bond? Yield-to-maturity of an annual zero-coupon bond Qualitative and conceptual issues to know What is the relationship of price vs. yield What is the relationship of price volatility (when interest rates change) to the maturity of a bond Are longer or shorter maturity bonds more or less volatile? What happens to the price of a bond as the bond matures? Inflation - small portion of Ch. 2 Quantitative problems - Given two of the variables - how do you solve for the missing one? Stocks - Ch. 9 What is the constant growth equation? When do you use it, and what are some variations you may see in problems that require it? Explain these concepts R = total return = dividend yield + capital gains yield Dividend yield = ending dividend(DIV1)/Beginning Price(P0) g = dividend growth rate = price growth rate = capital gains yield Preferred shares of stock How would you solve for either the price, rate of return (discount rate), or dividend for the following 2 scenarios? - Annual dividends - Quarterly dividends

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