Company OMEGA wants to invest in Bonds and Stocks. The finaocial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Grven the following information Bonds: The financial manager wants to buy bonds A. B, Cand he decided to buy different mumbers from each bood. All bonds pay annual coupon Bood Number of Boods Type YIM Coupon rate 5.5% Maturity 12 years 13 years Face Value A 25 Discount Bond 3000 1000 8.6% B 17 Par Bond 29 Premium Bond 18 years 10.2% 5.26 3000 Stocks: The financial manager wants to buy Stocks X. Y, Z and be decided to buy different numbers from each stock Par Bona 13 years TU00 29 Premium Bond 10.2% 5.2% 18 years 3000 Stocks: The financial manager wants to buy Stocks X. Y, Z and he decided to buy different numbers from each stock Stock Dividends Type Required Return Dividends I Number of Stock 2300 Growth Dividends 0 Zero Growth 10% 3.8 1900 15% 4% 1.8 Constant Growth 2100 Con 14% 3% Growth Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks.
Company OMEGA wants to invest in Bonds and Stocks. The finaocial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Grven the following information Bonds: The financial manager wants to buy bonds A. B, Cand he decided to buy different mumbers from each bood. All bonds pay annual coupon Bood Number of Boods Type YIM Coupon rate 5.5% Maturity 12 years 13 years Face Value A 25 Discount Bond 3000 1000 8.6% B 17 Par Bond 29 Premium Bond 18 years 10.2% 5.26 3000 Stocks: The financial manager wants to buy Stocks X. Y, Z and be decided to buy different numbers from each stock Par Bona 13 years TU00 29 Premium Bond 10.2% 5.2% 18 years 3000 Stocks: The financial manager wants to buy Stocks X. Y, Z and he decided to buy different numbers from each stock Stock Dividends Type Required Return Dividends I Number of Stock 2300 Growth Dividends 0 Zero Growth 10% 3.8 1900 15% 4% 1.8 Constant Growth 2100 Con 14% 3% Growth Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks.
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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