Hi, I am stuck with my assignment.
0 A convertible bond gives the right to purchase 70 ordinary shares per E100 nominal. The market prices of the convertible bond and ordinary shares are f120 and 90 pence respectively. The conversion premium per share is: A 81p B 125p C 129p D 171p [2] 1 Explain why ordinary shares are popular amongst both issuers and investors. [5] 2 Loan stock can be issued in many forms. Describe the generic characteristics of loan stock. [5] 3 Describe the investment characteristics of convertible loan stock. [5] 4 An investor purchases a convertible loan stock convertible to one ordinary share at any time up to 31 December 20XX. List the possible courses of action open to the investor, and state circumstances in which each might be appropriate. [5] Explain the reasons why a company might choose to issue a Eurobond rather than issue ordinary shares in order to raise capital. [5]1 A new computerised ultrasound scanning technique has enabled doctors to monitor the weights of unborn babies. The table below shows the estimated weights for one particular baby at fortnightly intervals during the pregnancy. Gestation period (weeks) 30 32 34 36 38 40 Estimated baby weight (kg) 1.6 1.7 2.5 2.8 3.2 3.5 [x=210 _x2 =7,420 _y=15.3 _v2 = 42.03 _xy = 549.8 (i) Show that: (a) 5xx =70, 5yy = 3.015 and Sxy = 14.3. (b) the fitted regression line is y =-4.60+0.2043x . (c) 62 = 0.0234. Calculate the baby's expected weight at 42 weeks (assuming it hasn't been born by then). (a) Calculate the residual sum of squares and the regression sum of squares for these data. (b) Calculate the coefficient of determination, R" , and comment on its value. (iv) Carry out a test of Ho : /=0 vs H] : />0, assuming a linear model is appropriate. (v) Construct an ANOVA table for the sum of squares from part (iii)(a) and carry out an F-test stating the conclusion clearly. (vi) (a) Estimate the mean weight of a baby at 33 weeks. Calculate the variance of this mean predicted response. (b) Hence, calculate a 90% confidence interval for the mean weight of a baby at 33 weeks. (vii) (a) Estimate the actual weight of an individual baby at 33 weeks. Calculate the variance of this individual predicted response. (b) Hence, calculate a 90% confidence interval for the weight of an individual baby at 33 weeks. [ctd.]The table below shows some of the residuals: Gestation period (weeks) 30 32 34 36 38 40 Residual 0.07 0.05 0.04 -0.07 (viii) Calculate the missing residuals. (b) Draw a dotplot of the residuals and comment. (c) Plot the residuals against the x values and comment on the fit. (d) Comment on the Q-Q plot of the residuals given below: Normal Q-Q Plot Sample Quantiles -0. 1 -0.2 -1.0 0.5 0.0 0.5 1.0 Theoretical Quantiles .2 An analysis using the simple linear regression model based on 19 data points gave: $xx = 12.2 Syy = 10.6 5xy = 8.1 (i) (a) Calculate B . (b ) Test whether / is significantly different from zero. (ii) (a) Calculate r. (b) Test whether p is significantly different from zero. (iii) Comment on the results of the tests in parts (i) and (ii)
