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Hi, please help me to solve these,will upvote! Pill! HMS F'IIlJlI A year ago, Elena bought a Spanish government bond for ELHZD [Euro]I with a

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Hi, please help me to solve these,will upvote!

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Pill! HMS F'IIlJlI A year ago, Elena bought a Spanish government bond for ELHZD [Euro]I with a 5% coupon. Over the course of the next 12 months, interest rates drop sharply. As a result, she sells the bond at the current price of 1,1. a. Find the current yield that existed on this bond one year ago and today. b. Calculate the HPR return in euros for Elena. [See Chapter 5 for HPR formula.} Red Electrics Espaa 5A [BREE] is renancing its bank loans by issuing Eurobonds to investors. You are considering buying $8,000 worth of these bonds, which will yield ass. You are also looking at a U5. bond with similar risk that will yield 4%. You expect that interest rates will not change over the course of the next year, after which time you will sell the bonds you purchase now. a. How much will you make on each bond if you buy it, hold it for one year, and then sell it for $3309 {or the Eurodollar equivalent}? b. Assume the dollari'euro exchange rate goes from 1.3 to 1.0. How much will this cur- rencyr change affect the proceeds from the Eurobond? {Assume you receive annual interest at the same time you sell the Eurobond.) A certain 6% annual coupon rate convertible bond (maturing in 21:} years} is convertible at the holder's option into 20 shares of common stock. The bond is currently trading at $3M. The stock (which pays 75 a share in annual dividends} is currently priced in the market at $35 a share. a. What is the bond's conversion price? b. What is its conversion ratio? c. What is the conversion value of this issue? What is its conversion parity? d. What is the conversion premium, in dollars and as a percentage? e. What is the bond's payback period? f. If comparably rated nonconvertible bonds sell to yield 8%, what is the investment value of the convertible

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