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please can someone do it now ?? Neil Mort and Pedro Cortina are vice presidents of Acsenda Investment Management and co-directors of the company's Pension
please can someone do it now ??
Neil Mort and Pedro Cortina are vice presidents of Acsenda Investment Management and co-directors of the company's Pension Fund Division. A very important new client has requested Acsenda to present an investment seminar to its executive committee. Neil and Pedro, who will make the presentation, have asked you to help them by answering the following questions: a. What are the key features of a bond? b. What are call provisions and sinking fund provisions? Do these provisions make bonds more or less risky? c. How does one determine the value of any asset whose value is based on expected future cash flows? d. How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with 10% annual coupon if its required rate of return is 10%? e. What is the expected value of the bond described in d) if, just after it had been issued, the expected inflation rate rose by 3%, causing investors to require a 13% return? Would we now have a discount or a premium bond? 1. What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887? That sells for $1,134.20? What does the fact that bond sells at a discount or premium tell you about the relationship between rd and the bond's coupon rate? g. How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment. 10% coupon bond if nominal ra = 13% Step by Step Solution
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