Posted: December 31st, 2020

Valuing Bonds and stocks, assignment help

Question description

Looking for some serious help in Financial Get research paper samples and course-specific study resources under   homework for you course hero writing service – Manage ment assignment.  I needed honest and willing to meet my dead
line.  Instruction as following questions
using grammatically correct language and appropriate APA citations. All questions need to be answer and with
APA citations. All material MUST come from the book only. (The book that used is Finance
by Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online).  Chapter 7 Valuing Bonds, Pages 160-189 this chapter covers bond features
and types of bon, bond valuation, bond pricing and how interest rates affect
bond prices and Chapter 8 Valuing stocks, page 190-215.  This chapter covers various components of
stock returns and stock valuation.. There are some hints/suggestions
for certain questions in this assignment
Note: In addition to your solution to each computational problem, you MUST
show the supporting work leading to your solution to receive credit for your
answer.
Question 1:
Proficient-level: “What does a call provision [call
feature] allow [bond] issuers to do, and why would they do it?” (Cornett,
Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online. p. 184).
Distinguished-level: State what additional compensation is paid,
in addition to the bond principal, when a bond is called.
Question 2:
Proficient-level: “Provide the definitions of a discount
bond and premium bond. Give examples” (Cornett, Adair, & Nofsinger,
2016: 2024 – Do my homework – Help write my assignment online, p. 184).
Distinguished-level: Explain why market interest changes are
reflected in bond prices.
Question 3:
Proficient-level: “Write a page paper – Describe the differences in interest
payments and bond prices between a 5 percent coupon bond and a zero coupon
bond” (Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 184).
Distinguished-level: Given a change in market interest rates,
determine which of the two bonds would remain closer to its par value.
Question 4: HINT-The
correct price (present value) of the bond will fall between the range of
$470.00 and $479.99.  (REMINDER you are
also required to identify the known variables use.
Proficient-level: “Calculate the price of a zero coupon
bond that matures in 20 years if the market interest rate is 3.8 percent”
(Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 185).
Assume semi-annual compounding.
Distinguished-level: State why zero coupon bonds are sold at
steep discounts.
Question 5: HINT- The
correct price (present value) of the bond will fall between the range of
$690.00 and $699.99 (REMINDER you are also required to identify the known
variables used.
Proficient-level: “Compute the price of a 3.8 percent
coupon bond with 18 years left to maturity and a market interest rate of 6.8
percent” (Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online). Assume interest payments
are paid semi-annually, and solve using semi-annual compounding.
Distinguished-level: Explain why the bond is either a discount
bond or a premium bond.
Question 6: HINT- The
correct yield to maturity (I) of the bond will fall between the range of 5.00%
and 5.99%.  BE SURE TO SOLVE AND SHOW
RESPONSE OUT TO FOUR DECIMAL PLACES AS I HAVE SHOW IN THE RANGES AMOUNTS.  REMINDER YOU ARE ALSO REQUIRED TO IDENTIFY THE
KNOWN.
Proficient-level: “A 5.65 percent coupon bond with 18 years
left to maturity is offered for sale at $1,035.25. What yield to maturity
[interest rate] is the bond offering?” (Cornett, Adair, & Nofsinger,
2016: 2024 – Do my homework – Help write my assignment online, p. 186). Assume interest payments
are paid semi-annually, and solve using semi-annual compounding.
Distinguished-level: Explain what effect a decrease in the
offered sales price would have on the yield to maturity
Question 7:
Proficient-level: “As owners, what rights and advantages do
shareholders obtain” (Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 211)?
Distinguished-level: Write a page paper – Describe the disadvantages to owning stock.
Question 8:
Proficient-level: “Why might the Standard and Poor’s 500
Index be a better measure of stock market performance than the Dow Jones
Industrial Average?” (Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 211).
Distinguished-level: Explain how the Dow Jones Industrial
Average is more popular than the Standard and Poor’s 500.
Question 9:
Proficient-level: “What are the differences between common
stock and preferred stock?” (Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p.
211).
Distinguished-level: Write a page paper – Describe the similarities between common
stock and preferred stock.
Question 10: HINT-the
text does not show a specific equation to solve this problem; however, the
problem can be solved using a simple formula: 
FV= PV x (1+i). 
Proficient-level: “On May 19, 2015 – Research Paper Writing Help Service, the Dow Jones
Industrial Average set a new high. The index closed at 18,312.39, which was up
13.51 points from the previous day’s close of 18,298.88. What was the return
(in percent to four decimal places) of the stock market for May 19, 2015 – Research Paper Writing Help Service?”
(Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online).
Distinguished-level: Identify the three most recognized U.S.
market indexes.
Question 11: HINT- The correct purchase amount of the Time
Warner stock will fall between the range of 0.0001 (= 0.01%) and 0.0009
(=0.09%).  Be SURE TO SOLVE ANS SHOW RESPONSE OUT TO FOUR DECIMAL PLACES.  REMINDER YOU ARE REQUIRED TO IDENTIFY THE
KNOWN.
Proficient-level: “At your brokerage firm, it costs $9.50
per stock trade. How much money do you need to buy 300 shares of Time Warner,
Inc. (TWX), which trades at $22.62?” (Cornett, Adair, & Nofsinger,
2016: 2024 – Do my homework – Help write my assignment online).
Distinguished-level: Based on the amount of commission paid,
state whether a traditional full-service broker or a discount broker is being
used.
Question 12: HINT- The correct value of Safeco stock in the DISTINGUISHED
level (Using the 9% growth rate) is $31.97 per share.  (REMINDER YOU REQUIRED TO IDENTIFY THE KNOWN.
Proficient-level: “Financial analysts forecast Safeco
Corporation (SAF) growth for the future to be a constant 8 percent. Safeco’s
recent dividend was $0.88. What is the value of Safeco stock when the required
return is 12 percent?” (Cornett, Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 213).
Distinguished-level: Re-calculate the value of stock, assuming a
one percent increase in the growth rate.
Question 13: HINT- The
correct value of the Duquesne Light Company preferred stock will fall between
the range of $50.00 and $54.99 per share. 
(REMINDER YOU ARE ALSO REQUIRED TO IDENTIFY THE KNOWN
Proficient-level: “A preferred stock from Duquesne Light
Company (DQUPRA) pays $3.55 in annual dividends. If the required return on the
preferred stock is 6.7 percent, what is the value of the stock?” (Cornett,
Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 213).
Distinguished-level: Explain why the growth rate of preferred
stock is 0%.
Question 14: HINT- The
correct stock price of Ultra Petroleum will fall between the range of $50.00
and $51.99 per share.  (REMINDER YOU ARE
ALSO REQUIRED TO IDENTIFY THE KNOWN
Proficient-level: Ultra Petroleum (UPL) has earnings per share
of $1.56 and a P/E ratio of 32.48. What is the stock price?” (Cornett,
Adair, & Nofsinger, 2016: 2024 – Do my homework – Help write my assignment online, p. 213).
Distinguished-level: Explain how the P/E model computes what is
referred to as the stock’s relative value.
Question 15:
Chapter 7 in the M:
Finance textbook by Cornett, Adair, and Nofsinger provides an
introduction to the main concepts of bonds and bond valuations. Bond concepts are
important in finance, because the bond market is vital to finance and actually
comprises a larger market than does the stock market. Review Chapter 7, with
particular emphasis on the “Bond Market Overview” and “Credit
Risk” sections
-Write a page paper – Describe the different reasons that the U.S. government, local
governments, and corporations might issue bonds.
-One company has issued two bond classes. One issue is a
mortgage bond and the other is a debenture. Which issue will have a higher bond
rating and which issue will offer a higher yield? Why?
-If you were purchasing bonds, would you prefer debentures or mortgage
bonds? Why

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