The required rate of return for Gamma Ltd equity is 13.5% pa. What is the expected price of Gamma Ltd’s shares at the end of year six (accurate to the nearest cent)? 
January 5, 2018
Assume that z scores are normally distributed with a mean of 0 and a standard deviation of 1. Solve for each variable
January 5, 2018

Polycorp Treasury a company in the land of Zanadu is holding a parcel of Zanadu Government Bonds with a face value of $1,500,000.

Polycorp Treasury a company in the land of Zanadu is holding a parcel of Zanadu Government Bonds with a face value of $1,500,000. The bonds were issued six and a half years ago and still have three and a half years to maturity. They pay a coupon rate of interest of 6.5% pa, with interest being paid semi-annually. Currently the market yield quoted for Zanadu bonds is 4.2% pa. The convention in Zanadu financial markets is that the market yield and coupon rate are quoted as annual nominal rates. What is the market value of the bonds (in dollars accurate to three decimal places)?

 

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