A 12 percent coupon bond has 15 years to maturity and face value of Tk. 1000. Its current market price is 1035 Tk.; calculate yield to maturity of the bond (YTM) using trial and error approach. Briefly explain different types of corporate bonds with basic features. Identify prospect and challenges to develop bond market in Bangladesh. A company has five stock in the portfolio and portfolio beta= 1.8, each stock has equal weight and the total value of the portfolio=287,000 tk. One month later, finance manager decided to sell 4th stock and replaced by a new stock which value =93000 tk and new stock beta =1.60, calculate the portfolio new beta.
A 12 percent coupon bond has 15 years to maturity and face value of Tk. 1000. Its current market price is 1035 Tk.; calculate yield to maturity of the bond (YTM) using trial and error approach. Briefly explain different types of corporate bonds with basic features. Identify prospect and challenges to develop bond market in Bangladesh. A company has five stock in the portfolio and portfolio beta= 1.8, each stock has equal weight and the total value of the portfolio=287,000 tk. One month later, finance manager decided to sell 4th stock and replaced by a new stock which value =93000 tk and new stock beta =1.60, calculate the portfolio new beta.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- A 12 percent coupon bond has 15 years to maturity and face value of Tk. 1000. Its current market price is 1035 Tk.; calculate yield to maturity of the bond (YTM) using trial and error approach.
- Briefly explain different types of corporate bonds with basic features. Identify prospect and challenges to develop bond market in Bangladesh.
- A company has five stock in the portfolio and portfolio beta= 1.8, each stock has equal weight and the total value of the portfolio=287,000 tk. One month later, finance manager decided to sell 4th stock and replaced by a new stock which value =93000 tk and new stock beta =1.60, calculate the portfolio new beta.
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Bonds
Bonds are debts instruments that are issued by entities to raise funds and meet their capital requirements. It generally has a fixed interest rate and a fixed date of maturity. Entities are required to pay interest on bonds and redeem the bonds on maturity.
Yield to maturity
Yield to maturity is the minimum rate of return expected by the investor when such bond is held till maturity. There is an inverse relationship between the Bond's price and yield to maturity of the bond.
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