Inv2601 assignment 2 - Study guides, Class notes & Summaries

THIS ECS2601 ASSESSMENT 1 OF 2023 SEM EXPECTED ANSWERS HAS BEEN CAREFULLY PREPARED ENSURING THAT YOU SCORE ABOVE 75%

INV2601 ASSIGNMENT 2 Question 1 Answer: Reinvestment risk Explanation Lack of coupon payments on a zero coupon bond eliminates reinvestment risk. Reinvestment risk is a type of risk that a bondholder is exposed to when they receive cash inflows of which coupon payments are one. They might have to reinvest those funds at a relatively low yield if interest rates have gone down and thereby being exposed to reinvestment risk. Question 2 Answer: 9.95% Workings To calculate the YTC: On th...

INV2601 NEW | Answers Assignment 02 For 2022 | Semester 02

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INV2601 ASSIGNMENT 1 2022 SEMESTER 2INV2601 ASSIGNMENT 1 2022 SEMESTER 2 A+ For assistance and enquiries: Call/Whatsapp 066 077 8000 Calculations Kagiso’s estimate: Using the variable model D0 = 2 D1 = 2(1+0.30) = 2.6 D2 = 2.60(1+0.30) = 3.38 D3 = 3.38(1+ 0.20) = 4.056 D4 = 4.056(1+0.04) = 4.21824 Terminal value after year 3 (T3) = D4 (Ke−g) = 4.21824 (0.10−0.04) = 70.304 A+ Intrinsic value: CF0 = 0 CF1 = 2.6 CF2 = 3.38 CF3 = 4.056 + 70.304 Cfi = 10% Comp NPV = 61....

INV2601 ASSIGNMENT 1 SEMESTER 1 2023 QUESTIONS AND ANSWERS.n Step 1: Expected dividends D0 = 0.80 D1 = 0.80 (1+0.20) = 0.96 D2 = 0.96 (1+0.20) = 1.152 D3 = 1.152 (1+0.05) = 1.2096 Step 2: Terminal value (T2) T2 = D3 (ke−g) = 1.2096 (0.08−0.05 ) = 40.32 Step 3: Present value of dividends and terminal value. Using financial calculator: CF0 = 0 CF1 = 0.96 CF2 = 1.152 + 40.32 CFi = 8% Comp PV = 36.44 Explanation A and C are the odd ones out. We use market indices to predi...

THIS DOCUMENT CONTAINS ECS2601 ASSESSMENT 2 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS . CORRECT USE WILL HELP YOU SCORE ABOVE 75%

INV2601 Assignment 1 (ANSWERS) Semester 2 2023 - DISTINCTION GUARANTEED

INV2601 2023 semester 2 Assignment 1

INV2601 2023 semester 2 Assignment 1