Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Sto

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Company Omega Wants To Invest In Bonds And Stocks The Financial Manager Was Looking At Different Types Of Bonds And Sto 1 (58.99 KiB) Viewed 102 times

Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from each bond. All bonds pay annual coupon Bond Number of Bonds Type Coupon rate YTM Maturity Face Value А 28 Discount Bond 4.5% 7.5% 3000 B 22 Par Bond 1000 C 17 Premium Bond 10.5% 5.6% 14 years 1000 16 years 19 years Stocks: The financial manager wants to buy Stocks X Y Z and he decided to buy different numbers from each stock. Stock Number of Dividends Type Required Growth Dividends D Dividends 1 Stock Retum X 2600 Zero Growth 14 3.8 Y 1500 Constant 11% 6% 1.8 Growth Z 1900 Constant 12 3% Growth Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount