Question ID: 419 This question is worth 10 mare in total. This is a written calculation question, and you should perform the necessary calculations/working on paper to later be scanned and uploaded Start a new page for this question. For dollar amounts give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 2 decimal places it any purta al the question une values from earlier parts. Use the EXACT values from earlier parts QUESTION START a) Between government bonds and corporate bonds, which are riskier? Why? (1 mark) Duncan recently completed ACST 1001 and is hoping to apply what he has learned to start investing The Best investment he is comidering is corporate bonds. Specifically, Duncan is Interested in a $1.000 20 year semiannual coupon bond with a coupon rate of The annual yield to maturity for such bonds is by Calculate the fair price Duncah should pay for one such bond, given market conditions. (2 marks) d Suppo tuto other he purchases this bond immediately after receiving the coupon on that date. Duncan decides to sell bond to his friend lantan pays price that yields spa effective Calculate the price la pald, ignoring any other costs (such as brokerage marki) Calculate the return on Duncan's 6 months investment, expressed as a percentage (1 mark) Duncan is a condering investing in shares in a new company. Green Daye tid. Duncan can buy either ordinary shares or preference shares Laplain one difference between an ordinary share and a preference share (mark Duncan has decided to purchase an ordinary share. He has predicted that the first dividend will be paid will be rectly two years from today and amount to 35. From there, Duncan believes the dividend will grow 20% pa for years. After that the share will grow at 2.5% pa indefinitely Based on the lines of this thre. Duncan requires a return of 1% on his investment Calculate the maximum price he is willing to pay for this share (maries) QUESTION END You will need to scan this question and upload it to learn via the Final Exam submission link. Please disregard the box below for enter anything you want into it, it doesn't have any effect on your grade Antwer Question ID: 419 This question is worth 10 mare in total. This is a written calculation question, and you should perform the necessary calculations/working on paper to later be scanned and uploaded Start a new page for this question. For dollar amounts give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 2 decimal places it any purta al the question une values from earlier parts. Use the EXACT values from earlier parts QUESTION START a) Between government bonds and corporate bonds, which are riskier? Why? (1 mark) Duncan recently completed ACST 1001 and is hoping to apply what he has learned to start investing The Best investment he is comidering is corporate bonds. Specifically, Duncan is Interested in a $1.000 20 year semiannual coupon bond with a coupon rate of The annual yield to maturity for such bonds is by Calculate the fair price Duncah should pay for one such bond, given market conditions. (2 marks) d Suppo tuto other he purchases this bond immediately after receiving the coupon on that date. Duncan decides to sell bond to his friend lantan pays price that yields spa effective Calculate the price la pald, ignoring any other costs (such as brokerage marki) Calculate the return on Duncan's 6 months investment, expressed as a percentage (1 mark) Duncan is a condering investing in shares in a new company. Green Daye tid. Duncan can buy either ordinary shares or preference shares Laplain one difference between an ordinary share and a preference share (mark Duncan has decided to purchase an ordinary share. He has predicted that the first dividend will be paid will be rectly two years from today and amount to 35. From there, Duncan believes the dividend will grow 20% pa for years. After that the share will grow at 2.5% pa indefinitely Based on the lines of this thre. Duncan requires a return of 1% on his investment Calculate the maximum price he is willing to pay for this share (maries) QUESTION END You will need to scan this question and upload it to learn via the Final Exam submission link. Please disregard the box below for enter anything you want into it, it doesn't have any effect on your grade Antwer