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Quincy Jones is pursuing studies in Engineering and is currently in third year at a local university. However, he has heard much about the financial

Quincy Jones is pursuing studies in Engineering and is currently in third year at a local university. However, he has heard much about the financial landscape as it relates to financial investment products and services. He suspects that he will also have to pursue a career in Financial management in order to understand how it works. He wants to invest in financial assets as well as will be doing an investment in the engineering field but needs the financial skills to plan and evaluate the investment. Quincy suspected that he can ask for assistance from Woodburn and Co., which is an investment consulting firm. Assuming that you are an advisor at Woodburn and Co and Quincy requested the following:

1. Identify three Financial Asset popularly used within the Jamaican landscape excluding

bonds. (3 marks)

2. Explain any TWO of the Financial Assets listed above. (4 marks)

3. Explain what is a bond and how it works. (5 marks)

4. Identify any bond on the local or Caribbean or world market. Describe the features of this

bond (interest Rate, year of issue, face value, issuer and maturity date, subscription rate etc).

(6marks)

Please provide calculations for:

a) What is the current price of the bond using the formula? (6 marks)

b) What is the YTM using the formula? (5 marks)

5. Identify any Equity listed on the local stock market. Describe the features of this

Security (dividend paid, date of issue, par value, issuer and, subscription rate, preference etc).

(6marks)

Please provide calculations for:

a) What was the current price of the stock for the last two years using the formula? (9 marks)

b) What is the Yield of the stock for the last two years using the formula? (6marks)

(Total 50 marks)

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