The current price of a bond is $950. It has a face value of $1,000, a maturity date of 2 years and pays a 4% coupon rate every year. Calculate the price if the yield is 5%, and when it is 9%. Use linear interpolation to estimate the correct yield. (Hint: The previous problem solves for the price of the bond with a yield of 5% ). Attach File QUESTION 13 Calculate what you think the share price for company X should be given the following information and modelling firm value as a perpetuity with growth: Cash Flow From Operations =15,500m Capital Expenditure =4,600m Interest Expense =950m Corporate Tax =30% Growth rate =2% every year Cash on Balance Sheet =6,200m Number of Shares =5,000m Total Debt =8,000m Total Equity =90,000m Cost of Equity re =9.5% Cost of Debt rd =4% If the share currently costs $12 in the market, what action would you take? Attach File