حليت اول سؤالين
Consider a bond with a face value of $1,000 with 10 years to maturity and a coupon rate of 8%
paid semi-annually and the yield to maturity is 10% compounded semi-annually.
1. Find the market price of the bond. (10 marks)
2. If bond above had 30 years to maturity what would market price be and why has the price
changed? (15 marks)
Kd=YTM=10%
I = face value of bond * coupon rate
= 1000* .08= $80
V= I /2 ( PVIFA kd/2,2n) + MV ( PVIF kd/2,2n)
kd=5% ,I=$40 , n=20 year << bcoz they'll paid semi annually
1)-
=80/2(12.462) + 1000 (.377)
=$ 875.48
2)-
طبعا هنا مو عارفة ادا حيكون الدفع مرتين فالسنة او لا لانو لو كان كذا فحيصير عدد السنين ب60 والجدول مابوه 60
ادا كان مو مرتين فالسنة فحيكون الحل عاادي نفس الطريقة بس بدون ضرب عدد السنين ف2 او قسمة قيمة فائدة الدفع او معدل الفايدة على 2
1. Petro Alberta (PAL) stock has an expected dividend constant growth rate of 5%. Each share of
stock will receive, next period, an annual $2.25 dividend. The appropriate discount rate is 12%.
What is the value of the common stock? (15 marks)
2. Wild Desks Inc.'s preferred shares have a par value of $60 and are selling for $50. What is the
required rate of return if the preferred shares pay an annual dividend of 6 percent?
V of common stock = D1 /(ke-g)
Ke= 12% , g= 5% D0= 2.25
D1= D0(1+g)
= 2.25(1.05)=$2.36
V= 2.36/.07=$ 33.75
V of preffered stock = Dp / Kp
Kp=Dp/ V
Dp= 60*6%= $3.6
Kp= 3.6/50=.072=7.2%
ان اصبت فمن الله وان اخطأت فمن نفسي و الشيطان
وبالتوفيق
