Jo-Anne just bought 200 bonds at a purchase price of R1 043.70 each. The bonds will mature in 7 years’ time and have a face value of R1 000.00. The coupon rate is 11% and is paid semi-annually. Answer the questions that follow:

1.1 Calculate the prevailing interest rate.

1.2 If the prevailing interest rate is 12%, what would happen to the price of the bond?

1.3 If Lee-Anne bought the bonds at R1 043.70 and the prevailing interest rate changes to 12%, what would the capital gains yield be?

Lee-Anne bought the bonds at R1 043.70 and after four years she decides to sell the bonds while the prevailing interest rate is 9%. Answer the following questions relating to this scenario:
1.4.1 Calculate the capital gains yield.
1.4.2 Calculate the current yield.
1.4.3 Calculate the total Rand return.

Note on the questions above. Can you provide me with a more detailed calculation as to how you got to your answers for the questions and not just the answer after formula has been provided. Thank you

b) You are considering the two securities listed below.

i) Calculate the expected return for portfolio.

ii) Calculate the standard deviation of returns for portfolio.

iii) Justify why diversification work best for these stocks.

show Excel ( show all work including formulars )

You are considering an investment in the stock market and have identified two potential stocks, they are Westpac Banking Corp. (ASX: WBC) and Singapore Airlines Ltd. (SGX: C6L). The historical prices for the past 10 years are shown in the table below.

in the table below.

1. Which stocks would you prefer to own? Would everyone make the same choice? Explain your answer(s).

2. Calculate the correlation coefficient between the two stocks. Does it appear that a portfolio consisting of WBC and C6L would provide good diversification? Explain your answer(s).

3. Calculate the expected (annual) return if you owned a portfolio consisting of 50% in WBC and 50% in C6L. Would you prefer the portfolio to owning either of the stocks alone?

Fast Bikes Ltd is a small manufacturer planning to start a revolutionary line of battery operated bikes.

To start the project, the firm needs to purchase manufacturing equipment worth $ 10 million today and also incur an additional $ 2 million in research and development costs.

The equipment will be depreciated in equal amounts over the next 10 years.

In the first year, the firm expects to sell 100 bikess at $ 25,000 each and the manufacturing cost is estimated to be $ 15,000 per bike.

As demand rises and processes are streamlined, the firm expects revenues to grow by 8% each year for the first 10 years and remain constant from the 11^th year onwards into the indefinite future

Over the same period, cost of manufacturing is expected to rise by only 3% per year and stabilize from the 11^th year onwards.

To guard against contingencies, the firm needs to set aside $ 2 million at the start of the project. However, as the project develops, the contingency amount can be reduced by              $ 200,000 each year.

From the 11^th year onwards, the firm does not envisage buying or selling off any additional equipment or incurring any costs beyond the cost of manufacturing the cars.

To fund the project the firm borrows $ 5 million from the bank which charges an interest rate of 4%. The loan will need to be repaid in equal-sized annual instalments over 10 years, starting in Year 1.

The rest of the funding comes from shareholders who expect an 10% return on their investment.

The corporate tax rate is 40% and expected to remain constant.

a) Using this data, work out the free cash flow of the project from year 0 to year 10 on an Excel spreadsheet. Clearly highlight all relevant inputs, adjustments and formulae for your calculation.           

b) Calculate the NPV of the project  

Note: The project doesn’t terminate in 10 years but continues into the indefinite future

What can you say about the yield to maturity on a callable bond compared to an otherwise identical straight bond? Why?

63. List the primary differences between a civil case and a criminal case

64. Under what situations may a court of equity disregard the corporate entity and pierce the corporate veil? What is the legal effectof the decision?

Business Law class. ( Please short answers )

Post Card Depot, an large retailer of post cards, orders 4,660,332 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 23 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.09 per post card per year. The ordering cost is $362 per order. What is the annual total inventory management costs of post card inventory?

1.) Based on the following information, prepare a balance sheet. Current Assets = $15,000; Property, Plant & Equipment = $25,000; Accumulated Depreciation = $5,000; Accounts Payable = $5,000; Notes Payable = $5,000; Total Liabilities = $25,000

You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 5% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent. $ One year from today you must make a payment of $13,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 5% nominal interest compounded quarterly. How large must each of the two payments be? Round your answer to the nearest cent. $

Your client is 24 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $13,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 6% in the future. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $ How much will she have at 70? Round your answer to the nearest cent. $ She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ Annual withdrawals if she retires at 70: $

math

A corporation recently purchased some preferred stock that has a before-tax yield of 8.5%. The company has a tax rate of 40%. What is the after-tax return on the preferred stock? A. 7.48% B. 6.65% C. 7.04% D. 7.74% E. 7.28%

In a surprise announcement, NASA released details of a major contract with Lockheed-Martin (LMT) that would increase LMT's market value by $7.5 billion. It was widely expected by the market that this contract would be awarded to LMT's major competitor Boeing (BA). Assume that Boeing has 800 million shares outstanding and Lockheed Martin has 425 million shares outstanding. Prior to this announcement, the market felt that the probability of Boeing winning the contract was 90% and that Lockheed-Martin's chance was only about 10%. What do you anticipate will happen to Lockheed-Martin and Boeing's stock prices are a result of this surprise announcement? Show calculations.

Sandy is a single and has the following situation for the year: Sandy's income of $80,000; dividend income of $20,000; interest income of $2,000; short-term capital gain of $8,000 and long-term capital gain of 14,000. She also paid $1,000 on interest charges on her credit card. Her other total exemptions and itemized deductions is 22,000; these amounts will be deducted from her gross income to determine her taxable income. If she is files as a single individual, what is Sandy's marginal tax rate? Use the individual tax rate provided below. Individual Tax Rates: Single Individual Taxable Income You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at the Top of Bracket Up to $8925 $0 10.0% 10.0% $8925-36350 $892.50 15.0 13.8 $36250-87850 $4991.25 25.0 20.4 $87850-183250 $17891.25 28.0 24.3 183250-398350 $44603.25 33.0 29.0 $398350-400000 $115586.25 35.0 29.0 Over $400000 $116163.75 39.6 39.6 A. 10.0% B. 20.0% C. 25.0% D. 28.0% E. None of the above

A bank finds that its assets are not matched with its liabilities. It is taking floating-rate deposits and making fixed -rate loans. How can swaps be used to offset the risk?