Homework risk and tetumpe | Expected Retuam And Risk) Unive C Expected Rerum And Rise ginfile.php/336972/mod resource/content/1/Homework%202%20%28%20Bond%29.pdf Islamic Political Ethi. G when I download m... How do I force files... shidatsant Financial, (Question 1-3 is based on the same type of bond. Analyze those bonds and relate them with first and second relationship. Determine either the bond is sold at premium, par or discount 1. What is the current price of a RM1,000 par value bonds maturing in 9 years with a coupon rate of 7 percent, paid annually, that has a required rate of 6 percent? 2. What is the current price of a RM1,000 par value bonds maturing in 9 years with a coupon rate of 7 percent, paid annually, that has a required rate of 7 percent? 3. What is the current price of a RM1,000 par value bonds maturing in 9 years with a coupon rate of 7 percent, paid annually, that has a required rate of 15 percent? (Question 4-5 will test on a semiannual valuation) Var Bonds have a par value of RM1, 000. The bonds carry an annual coupon interest rate of 14 percent and the annual investors' required rate of return is 10 percent Interest is paid semi-annually. The bond will mature in seven years. If the coupon interest is paid semi-annually and the current market price is RM1. 200, will you purchase the bonds and what is your intrinsic value for the bonds? Zarra Bhd. issued a 6 years bond with a par value of RM1,000. The annual coupon rate is 12 percent and annual required rate of retum is 14 percent. If the interest is paid semi-annually, what is the intrinsic value for the bond? Fin - Search ... W chap 4 finant Sticky Notes Study Question 4C 1. SZY has prepared the following information regarding two investments under consideration Stock A Stock B Preb Return Pro Retum 0:20 2 percent 0.10 4 percent 0.50 18 percent 0.30 6 percent 0.30 27 percent 0.40 10 pont 0.20 12 percent a) Calculate the expected return for Stock A and Stock B b) Calculate the standard deviation for Stock A and Stock B c) Based on your answer which stock should you select and why? 2. Raz Rae Sdn. Bhd. is considering several investments. The rate on Treasury bills is currently 5 percent and the expected return for the market is 17 percent. Using CAPM, estimate the appropriate required rate of return for the following three stocks STOCK A B BETA 0.75 0.90 1.40 3. Anit Inc. is considering the following investments. The current rate on Treasury bils is 5.5 percent, and the expected return for the market is 11 percent. Using the Capital asset pricing model, what rates of return should Anit require for each individual security ? Stock Beta 0.75 H T 1.40 0.95 P W 125