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Required: a. 1. TVM and bond valuation questions (1 mark each, give answers to 2 decimal places): Your case company has an issue of $1,000

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Required: a. 1. TVM and bond valuation questions (1 mark each, give answers to 2 decimal places): Your case company has an issue of $1,000 par value semi-annual coupon bonds with 7 years remaining until maturity. The annual coupon rate and yield to maturity for these bonds are given in the spreadsheet. What is the price of the bonds? b. Your case company is considering a contract in which its customer will make end-of-month payments of the amount shown in the data spreadsheet (see instructions above) for 3 years. Your company's discount rate is also shown in the spreadsheet. What is the value of the contract to your case company at its commencement? c. Your case company needs to invest funds and has several alternatives available to it, A, B and C, all of equal risk. The interest rates for these options are given in the spreadsheet. What is the EAR of the alternative the company should choose if it wishes to maximise value? d. Your case company has gross profit as shown in the spreadsheet. Assuming the gross profit grows continuously over time at a given rate (see spreadsheet), what will the gross profit be in 10 years? e. Your case company is buying land for the amount given in the spreadsheet. The transaction will be financed by an amortised loan at 4.2% APR, quarterly compounding, with 20 years of end-of-quarter payments. What is the amount of the quarterly payment? f. Your case company has an issue of $100 par value annual coupon bonds with 5 years remaining until maturity. The annual coupon rate is given in the spreadsheet, along with the current price of the bonds. What is the YTM of the bonds

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