Max Marks: 10
Question 01:
Company A has out standing Rs.1,000 par value bonds with maturity period of 15 years from now and Company B has outstanding Rs.500 par value bonds with maturity period of less than one year from now.
Both the bonds have coupon rates of 10% p.a, and the interest is paid semi-annually on both the bonds.
Explain that which company’s bonds would have high interest rate risk and why. Marks: 03
Question 02:
A public limited company has outstanding an Rs.1000 face value bond with a 15% percent coupon rate and five years to final maturity. The interest on these bonds is paid semi-annually.
What value should you place on this bond if your nominal annual required rate of return is (i) 12% (ii) 16%?
Marks: 04
Question 03:
Suppose you are working in an investment company as a Financial Analyst. Your company wants to invest in zero-coupon bonds of Pak Steels Limited. These bonds have a face value of Rs.2000 per bond and have five years to maturity. If your company decided to have a 10% p.a return on this investment, then what price would you recommend per bond to purchase these zero-coupon bonds of Pak Steels Limited?
Marks: 03
Why work with us?
Authenticity:
All of our papers are authentic, as each paper of ours is composed according to your unique requirements.
Confidentiality:
We value you data. Our company is extremely efficient in guarding the privacy of our clients.
100% Money Back Guarantee:
In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund.
24/7 Support:
Our team members are available via email, live chat, and phone.
Revision Policy:
You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.
How the Platform Works
- Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
- Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
- In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
- To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
- The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.