Bond Package and Share Package Assignment | Homework For You

Problem 8. A large mutual fund is investigating the market to include new assets into its investment portfolio. There are sev Homework For YouProblem 8. A large mutual fund is investigating the market to include new assets into its investment portfolio. There are several options available:

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Orio: a bond package of a well-established company with high revenues and stable payouts. The data on the bond are the following its return is 5% lower than the required return on equity of this company, Coupon rate is 8% and coupons are paid semiannually. Only 2 years are left till maturity.

Oniowa share package of the same company. The shares are traded on the LSE and you have summarized information about the UK financial market in the table below. Correlation of returns between the market and the company is 0,6. The standard deviation of returns for the company is 10%. The dividend per share has been fixed by top – management 3 years apo at the level of 45 and analysts do not have any reasons to assume that this amount will be changed.

Instrument Price (to) Price (L1) Standard deviation,% FTSE 6505£ UK govt 105£ 101£ bonds (gilts) 7416

a) Describe the process of bond valuation specifically stating the parameters that are necessary to calculate the price in practice. (5 points)

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

b) Calculate the bond price. (3 points)

e) Describe the two main types of risks that are inherent in every stock. Illustrate graphically and mathematically (4 points)

d) Calculate the stock price justifying all the assumptions/ models that are used in your calculations. (5 points)

e) Describe the value and size anomaly not captured by CAPM and describe the approach that can be used to capture both anomalies. (8 points)Get Finance homework help today

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
good job
Customer 456821, April 4th, 2022
Business and administrative studies
Customer 460073, July 2nd, 2022
Good job
Customer 463245, February 6th, 2023
Excellent work!
Customer 463337, March 7th, 2023
Business and administrative studies
Good content. Journals do not require citations/references.
Customer 459947, May 29th, 2022
I am glad you did the corrections properly. Good work.
Customer 463679, February 9th, 2023
Good job.
Customer 459155, May 31st, 2022
Customer 452441, April 19th, 2022
Excellent work!
Customer 463337, April 18th, 2023
ASCI 491: Operational Applications in Aeronautics
Well articulated.
Customer 457731, April 12th, 2022
The paper is well-written with few errors.
Customer 452455, June 26th, 2023
Excellent work!
Customer 463463, December 12th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat