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I have transcribed below; thank you Suppose as an investor you are considering purchasing a bond issued by BANK with the current price of Tshs

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  1. Suppose as an investor you are considering purchasing a bond issued by BANK with the current price of Tshs 110,000 and a coupon rate of 14% This bond is expected to be redeemed in 10 years at a price of Tshs 100,000

REQUIRED: Calculate the (i) Yield-to-Maturity (YTM), (i) Current Yield and Nominal yield.

  1. DVL Bank is planning to issue a 5-year bond with a maturity value of Tsh 100,000. The coupon interest rate is 15%. The required rate of return is 11%. What is the value of the bond if periodic interest is paid semi- annually?

(c) If ABC Finance Company is currently paying a dividend of Tshs 50 and its shares are selling at Tshs 300. What is the expected rate of return if the dividend are expected to grow at a constant rate of 10%?

(a) Suppose as an investor you are considering xachacing a boys issued by BANK with the current price of Tshs 110,000 and a coupofteid 14% This sentencexpec to be redeemed in 10 years at a price of Tshs 100,000 3 REQUIRED: Calculate the (i) Yield-to-Maturity (YYM), (i) Cerer goed and Nominal yield. (55+3 = 15 merce ) (6) DVL Bank is planning to issue a 5-year bond witir si maturity Neel cos Tasche (00000 The coupon interest rate is 15%. The required rate of roenen on disc band is ll . Wokalis the value of the bond if periodic interest is paid semi- ents? {te nemuerte . C tanance Company is currently paving a dividend er the endlitbchoterae sciling at Tshs 300. What is the expected sale of return irtle dividend are expected to grow at a constant rate of 100? 15 . Scanned with CamScanner

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