1 The value is 107.6655 as shown below:
2. The value is $96,326.46 as shown below
5. a. The price is $95.9353 as shown below:
b. The price of the 3-year 5.8% coupon bond assuming the yield is unchange
at 7% is $96.8508, as shown below.
C The p
FIN5DBS DEBT SECURITIES
Due Date: 11:59 pm, Friday, 27th May. 2015
Based on the publicly available information of Myer (http:/www.myer.com.au/),
its industry sector and the economies that it trades in, prepare a credit rating
Bond ABC exhibits negative convexityfor a 100 basis point change in rates, the gain is less
than the loss; Bond XYZ exhibits positive convexity. A high coupon bond will exhibit
negative convexity. A low coupon bond will exhibit positive convex
What are the advantages of using the swap curve as a benchmark of interest rates
relative to a government bond yield curve?
According to the local expectations theory, what would be the difference in the onemonth total return if an
An investor buys a three-year bond with a 5% coupon rate paid annually. The bond, with a
yield-to-maturity of 3%, is purchased at a price of 105.657223 per 100 of par value.
Assuming a 5-basis point change in yield-to-maturity, the
On the surface every industry is different. Each industry has a distinctive structure
that shapes the nature of competitive interaction that unfolds there. Understanding
the underlying structure of a companys industry, now and in the
Tutorial Week 4
Chapter 4 SOLUTIONS
2. Ms. Peters should inform her client that under one theory of the term structure of
interest rates, the pure expectations theory, a downward sloping yield curve does
that short-term interest rates in the futur
Chapter 3 SOLUTIONS
1. None of the statements is correct and therefore one must disagree with
each statement for the following reasons.
a. The foreign bond market sector of the Japanese bond market consists
of non Japanese entities that issue b
Chapter 1 SOLUTIONS
1. All other factors constant, the longer the maturity, the greater the price
change when interest rates changes. So, Bond B is the answer.
5 .For this bond the excerpt tells us that the issue may be redeemed prior to
Tutorial Week 6
Chapter 6 SOLUTIONS
1. The three sources are (1) coupon interest, (2) any capital gain (or loss, a
reduction in return), and (3) reinvestment income.
4. This question requires no calculations. The question tests for an
understanding of the
Based on the information in Exhibit1, calculate the EBITDA interest coverage ratio of Adidas
Bas one the following information, calculate the Debt/Capital ratio of Adidas AG