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VALUING BONDS (a) On October 31, 2021, you find the following bond quote for Global Own, Inc. Answer the following questions using the information
VALUING BONDS (a) On October 31, 2021, you find the following bond quote for Global Own, Inc. Answer the following questions using the information from the available sources. COMPANY COUPON MATURITY Global Own, Inc. 5.55% November 2050 LAST PRICE 961.24 961.24 959.33 YIELD HIGH LOW % 5.825 Questions (i) Calculate the YTM for this corporate bond issued by Global Own, Inc. (ii) Calculate this bond's coupon yield over the next year. (3 MARKS) (2 MARKS) (iii) If your required rate of return for a bond of this risk class is 6.2%, calculate the value you place on this Global Own bond. (4 MARKS) (iv) Explain if you would be interested in purchasing this bond at the required return of 6.2%. (2 MARKS) (b) Explain the provisions are available to protect a preferred stockholder. (4 MARKS)
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