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QUESTION 1 5 points Save As Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds
QUESTION 1 5 points Save As Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from cach bond. All bonds pay annual coupon Bond Number of Bonds Type Coupon rate YTM Maturity Face Value A 28 Discount Bond 4.5% 7.5% 3000 Par Bond 1000 Premium Bond 10.5% 5.6% 1000 16 years 19 years 14 years Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock. Stock Dividends Type Growth Dividends 0 Dividends 1 Number of Stock 2600 Required Return 14% X Zero Growth 3.8 Y 1500 11% 6% 1.8 Constant Growth Constant Growth Z 1900 12% 3% 2 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount
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