BONDS VALUATION STOCKS VALUATION

Q.1 (A) YTM 10% Q.1 g 8.33%

Q.1 (B) INTEREST 300
Q.1 (C) 100 8.5436 854.36 Q.2 Do 2.00
1,000 0.2311 231.07 g1 18% 1 2.36 2.05
PRICE 1,085.44 g2 18% 2 2.78 2.11
Q.1 (D) PRICE WOULD DECLINE EACH YEAR g3 18% 3 3.29 2.16
g4 18% 4 3.88 2.22
Q.2 (A) 100 11.2578 1,125.78 g5 12% 5 4.34 2.16
1,000 0.0994 99.38 g6 12% 6 4.86 2.10
PRICE 1,225.16 g7 12% 7 5.45 2.05
g8 12% 8 6.10 1.99
Q.2 (B) CURRENT YIELD 6.96% g9c 6% 8 71.86 23.49
Ks 15% Price 40.33
Q.2 (C) 60 11.9504 717.02
1,000 0.3427 342.73 Q.3 Do 3.00
PRICE 1,059.75 g1 40% 1 4.20 3.65
Q.2 (D) YTM 7.14% g2 40% 2 5.88 4.45
g3 40% 3 8.23 5.41
g4 40% 4 11.52 6.59
g5 40% 5 16.13 8.02
g6c 12% 5 602.36 299.48
Ks 15% Price 327.60

Q.4 Po 35.33
P2 39.70
STOCKS VALUATION
Q.5 Po 264.00

Q.6 g 5.75%

Q.7 Ks 14%

Q.8 Do 1.50
g1 12% 1 1.68 1.47
g2 12% 2 1.88 1.45
g3 12% 3 2.11 1.42
g4 12% 4 2.36 1.40
g5 8% 5 2.55 1.32
g6 8% 6 2.75 1.25
g7 8% 7 2.97 1.19
g8 8% 8 3.21 1.13
g9c 5% 8 37.46 13.13
Ks 14% Price 23.77