Question
Q1) For a 3 year bond with a face value of $100 and a coupon rate as well as a market rate of 7% CALCULATE
Q1) For a 3 year bond with a face value of $100 and a coupon rate as well as a market rate of 7% CALCULATE THE PRICE OF THE BOND AND THE BOND WILL SELL AT DISCOUNT, PAR OR PREMIUM AND WHY ?
Q2) Calculate the price of a 3 year bond with a face value of $10000, coupon rate of 7% annually and annual market yield of 7% annually. Coupon payments are made semi annually.
Q3) What is the yield to maturity for a 3- year bond with a face value of $100000, a coupon rate of 9%,and the current price of the bond is $75000. Coupon payments are made annually
Q4) What is the annual yield to maturity for a 10 year bond with a face value of $40000, a coupon rate of 3% being bought by an investor for $ 45000? Interest payments are made quarterly
Q5) A change in interest rates for two 10-year bonds with coupon rates of 6% and 9% respectively will sell at a discount premium or par and calculate the bond price
Q6) Securities with lower marketability have what ?
Q7) A 8 year bond with a face value of $100,000 and having a coupon rate of 8%. Coupon payments are made semi-annually. What's the present value of the first coupon payment?
Q8)Camila, as an investor, is interested in buying a preference share of a firm that pays a dividend of $0.40 every half year. If she discount such cash flows at 7% per annum, what is the price of the share?
Q9)Hawkins Ltd. has a perpetual preference share issue that pays a dividend $12 per year. Shareholders require a 12 per cent return on such an investment. What should be the price of the preference share??
Q10)Samsung's preference shares have an annual dividend of $5 (paid semi annually), a par value of $100, and an effective maturity of 20 years. If similar preference shares issues have market yields of 4%. Calculate the value of Samsung's share price.
Q11) Refer to the below image and please solve the below given MCQ and provide an explanation
Which one of the following statements is NOT true? Select one: O A. The overall efficiency of a capital market depends on its operational efficiency and its informational efficiency. B. Operational efficiency focuses on bringing buyers and sellers together at the lowest possible cost. C. If market prices reflect all public information about securities at a particular point in time, the market is semi-strong form efficient. D. If market prices reflect all public relevant information about securities at a particular point in time, the market is strong-form efficientStep by Step Solution
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