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 (56.88 KiB) Viewed 129 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 A 18 Discount Bond 4.6% 7.8% 19 years 1000 B 25 Par Bond 2000 с 29 Premium Bond 9% 5.4% 12 years 3000 16 years Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from cach stock, Stock Number of Dividends Type Required Growth Dividends 0 Dividends 1 Stock Return X 2600 Zero Growth 14% 2.3 Y 2400 Constant 13% 3% 1.8 Growth Z 1800 Constant 14% 3% 2 Growth Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks.