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Question 4 (1 point) BCFERR 3.55 04/08/2039 is a bond issued by BC Ferries (a 17.5 year bond). If the price was $777, what is
Question 4 (1 point) BCFERR 3.55 04/08/2039 is a bond issued by BC Ferries (a 17.5 year bond). If the price was $777, what is the annual yield on this bond if you just received the last coupon payment Recall bonds pay semi-annual coupons on a bond with a Face Value of $1000 and the annual yield is quoted as twice the semiannual rate (VTM) 1.41% 2.709 5.56% 5.52% Question 5 (1 point) Two years ago, you bought the strip (you will only receive the coupon payments) from some bonds for your RRSP. The $10,000 face value Government of Alberta Bond, matures 10 years from the date of original issue (so eight years from today). The original coupon rate on this Government of Alberta Bond was 6% per annum, with semi-annual coupons. och the fourth payment of those semi-annual coupons. estion 9 (1 point) You've been given the following comparable information in USD $. You want to calculate a price estimate of WestJet today. Westjet's EBITDA for 2020 was $199.99 MUSD (after the necessary adjustments to compare earnings to US airlines). Westjet has 115.65 M shares outstanding. debt of $900 MUSD and cash of $1,502 M USD. Use an average multiple to determine the estimate of the Westjet share price today based on the comparable companies listed. (Hint: Choose the appropriate multiple. Calculate the EV of Westjet based on the average of the multiple from these competitors. Solve for share price from the calculated EV). Company Name EV/Sales EV/EBITDA Delta Air Lines (DAL) 1.1 7 American Airlines (AAL) 0.9 6.5 United Continental (UAL) 0.2 7.2 Southwest Airlines (LUV) 1.5 9 Alaska Air (ALK) 1.8 6.3 JetBlue Airways (JBLU) 1.3 6.1 SkyWest (SKYW) 0.8 8.2
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