Welcome to Premium Paper Help

premiumpaperhelp.com logo

Our Services

Get 15% Discount on your First Order

I need some help!  Part 1 Discussion Question In Chapters 5 , 6, and 7 of Ross, et al (2022) textbook you learned about the

I need some help! 

Part 1 Discussion Question

In Chapters 5 , 6, and 7 of Ross, et al (2022) textbook you learned about the concept of time value of money and how it is applied for bond valuation. View the following YouTube videos:

· Time Value of Money TVM Lesson/Tutorial Future/Present Value Formula Interest Annuities Perpetuities. (2014). [YouTube Video]. In YouTube.


· Chapter 7 : Interest Rates and Bond Valuation. (n.d.). Www.youtube.com. Retrieved July 19, 2022, from


Once viewed discuss the following with your peers:

Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay the owner of each security $100,000 on March 28, 2038, but investors would receive nothing until then. Investors paid TMCC $24,099 for each of these securities; so they paid $24,099 on March 28, 2008 for the promise of a $100,000 payment 30 years later.

· Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?

· A feature of this particular deal is that TMCC has the right to buy back the securities on the anniversary date at a price established when the securities were issued. What impact does this feature have on the desirability of this security as an investment?

Part 2 Bond Valuation Assignment

Based on the content covered in Week 5 and Chapters 5, 7 and 7 of the Ross, et al. (2022) text, students learned about time value of money and its application to bond valuation. Students should address the following:

Two bonds A and B have the same credit rating, the same par value, and the same coupon rate.

Bond A has 30 years to maturity and bond B has 5 years to maturity.

1. Explain which bond will trade at a higher price in the market and why?

2. What happens to the market price of each bond if the interest rates in the economy go up? Elaborate on your rationale.

3. Which bond would have a higher percentage price change if interest rates go up? Explain.

4. Substantiate your argument with numerical examples.

As a bond investor, if you expect a slowdown in the economy over the next 12 months, what would be your investment strategy?For this assignment, create a PowerPoint presentation and record yourself presenting your answers to the questions above in a 5-7 minute video. Use at least two credible sources to support ideas for your presentation.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Follow these Essay Assignment Guidelines and the Essay Grading Rubric. Consult the Course Syllabus and Canvas and below this assignment description for the

Follow these Essay Assignment Guidelines and the Essay Grading Rubric. Consult the Course Syllabus and Canvas and below this assignment description for the assignment due date. Intergenerational Trauma and Healing provides multinational and multi-ethnic perspectives on the sources, effects, and modes of healing of intergenerational trauma among diverse communities; “Putting Down

Assignment Overview Communication Effective communication boosts productivity, fosters teamwork, reduces

Assignment Overview Communication Effective communication boosts productivity, fosters teamwork, reduces misunderstandings, drives employee engagement, and improves decision-making to build a successful workplace culture. **Complete SLP 3 before Case 3** Session Long Project 3 Resources 13 Strategies For Breaking Down Silos And Boosting Interdepartmental Communication  (2023)  How to Improve Cross-Functional Communication

Directions Write a paper (1,250-1,500 words) in which you revise your research questions and provide a theoretical foundation or conceptual framework that

Directions Write a paper (1,250-1,500 words) in which you revise your research questions and provide a theoretical foundation or conceptual framework that will ground your study. Use either the qualitative or quantitative directions below depending on your topic. Hint: Review relevant literature and theories that provide a foundation for understanding

Problem Set #1 Computron Inc. is a public corporation specializing in

Problem Set #1 Computron Inc. is a public corporation specializing in software manufacturing. The company designs and develops software programs that allow users to create their own documents, apps, animations, and other media content. The company’s sales revenue and profit margins have decreased over the years because of the Covid-19