question 01a multi national corporation sold an issue of bonds in the pakistani bond 4529090

Question: 01A Multi­national Corporation sold an issue of bonds in the Pakistani bondsmarket. The main features of these bonds were as follow:a) Maturity period = 10 Yearsb) Face value = Rs.1,000c) Coupon rate = 10% per annumd) Interest is paid semi­annuallyRequired:1) Two years after the bonds were issued, the going rate of interest on bondssuch as these fell to 6% per annum. At what price would the bonds sell inthe market?2) Suppose that, two years after the initial offering, the going interest ratehad risen to 12%. At what price would the bonds sell?3) Comment on your results in Part­1 and Part­2. (Marks: 08)Note: In both cases you need to calculate market price/bond.Question: 02Microtech Corporation is expanding rapidly, and it currently needs to retain all ofits earnings, hence it does not pay any dividends. However, investors expectMicrotech to begin paying dividends, with the first dividend of Rs.1.00 comingafter three (3) years from today. The dividend should grow rapidly – at a rate of50% per year – during the 4th and 5th year. After 5th year, the company shouldgrow at a constant rate of 8% per year. If the required return on the stock is 15%,what is the value of the stock today?

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount