UGBA 103 Fixed Income Valuation 1A) YTM is 4.75% at time of issuance. YTM is 4.88% at 99 per 100. YTM is 4.62% at 101 per 100. 1B) NTT should have been selling at $915.861M PVpredrop = (47.5/.0475)*(1-(1/((1.0475)^2))) = 88.636M PVpostdrop = ((30/.03)*(1-(1/((1.03)^2))))/(1.03^2) = 198.502M PVfacevalue = 1B/(1.0475)^10 = 628.723M PVpredrop + PVpostdrop + PVfacevalue = 915.861M 2A) Bond A should sell at $1040.55 each. Bond B should sell at $1000 each. Bond C should sell
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| Total Marks: ______ / 100 marks = ________ % Grade: Question I: Identification: Fill in the blanks the correct answer. You are having a dress shop‚ indicate the proper classification of cost behavior whether it is VARIABLE or FIXED for each of the following items below: |Cost Element |Cost Behavior | |Material used to make shirts
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BONDS MARKET IN INDIA What are Bonds? A bond is a debt security in which the authorized issuer owes the holders a debt and‚ depending on the terms of the bond‚ is obliged to pay interest (the coupon) and/or to repay the principal at a later date‚ termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor)‚ the holder is the lender (creditor)‚ and the coupon is the interest. Bonds have a maturity
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PIMCO analysis of bond markets This analysis gives investors thorough information about bond markets and provides an overview risks faced by bondholders. Purchasing a bond means you are lending money to a government‚ whereby the issuer provides a bond in which promises to a specified interest rate during the bond’s life. The capital value will be repaid at the time of investment when a bond reaches maturity. Therefore‚ it is suitable for those investors who seek a predictable income with
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INSTITUTE FOR FINANCIAL AND ECONOMIC MANAGEMENT REGIONAL WORKSHOP ON MONEY MARKET DEVELOPMENT AND TECHNIQUES OF SECURITIES TRADING-LAGOS‚ NIGERIA MARCH 4-14 2008 THE BOND MARKET IN GHANA-CHALLENGES FOR ITS DEVELOPMENT A. Introduction A bond has been defined as a debt (loan) instrument which requires the issuer to repay the investor the amount borrowed with interest over a predetermined period of time. Bonds can be callable‚ redeemable‚ convertible‚ extendable or retractable. They may
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Artiom Zacharevskij Discuss the extent to which a vegetarian diet is healthy. To say till what extent a vegetarian diet is healthy. First of all need to understand what vegetarian diet is and what is mean to be healthy. Among the areas of non-traditional food‚ vegetarian diet is one of the oldest and most common. Vegetarianism - is an ancient healing nutrition system‚ which has a deep philosophical meaning‚ and assuming certain lifestyle. Healthy means - a state of complete physical‚ mental and
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Discuss 3 ways in which creolization has impacted the development of Caribbean art forms. Creolization is the coming together of new-comers and cultural strangers in a subordinate society. Creolization has highly influenced the development of Caribbean Art form in quite a few ways; Caribbean literature‚ fashion and music‚ all due to the colonial experience. Creolisation has played a major role in the evolution of music into several subgenres and fusions. Calypso is a style of Afro-Caribbean music that
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With reference to waste management‚ discuss the extent to which sustainability can be achieved. (40 marks) Waste management is all about the need to change our attitude to waste. The four methods of managing waste at the moment are: landfill‚ composting‚ recycling and energy recovery (incineration). To be sustainable‚ waste must be managed in a way that is maintainable for the foreseeable future and will not be hurtful to the environment or the population. Waste is a problem at the moment because
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has allowed accounting policy-making power to remain in the private sector. ANS: T 4. Arguments supporting unregulated markets are largely inductive in nature. ANS: F 5. All of the arguments supporting the case for unregulated markets relate to the incentives for a firm to report information about itself to owners and to the capital market in general. ANS:
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Matlab to get an intuitive understanding of bonds valuation. 1. Basic knowledge: 1.1 The price equation and its six contributing factors As we know‚ there are six factors that determine the expected price of bonds: the par value(F)‚ the maturity(n) the yield to maturity(y)‚ the coupon interest(CF)‚ the interest payment frequency(m)‚ and the interest rates for each period(ri). We assume that the coupon interest is fixed‚ then the price of bonds(P)is the discounted cash flows of each period:
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