please see attached

*********** ***************** NameCourseDateProblem 2: ******** VALUATION *** *** ************ ** **** *** ***** ****** * WeWorkThe face ***** ** *** **** when ****** *** **** That ******* **** *** current ****** ***** of *** bond ******** *********** the **** *** ******* years *** finding *** future ***** ** **** ******** yield ** maturity ******* is ** ************ ** maturity= (C * *********** **************** Interest paymentFV- Face valuePV- ******* ******* ***** to maturityInterest ******** are **** ****** ***** ** ***** * ***** $325Face Value= ************ Value * ******** remaining 10years ********** ** *** ***** ** ** ************ 10*2= ****** (325 +(1000-91088)/20)/ (1000+91088)/2YTM= **** * ****** 95544= 36956/95544YTM= ******* YTM for ********** ******** ** 387% ***** the ****** *** ** **** ***************** ************** ***** ** ******** ** ********* ******** **** *** *** **** ******* was= 774%-2% ********* ***** * 574%Assuming *** **** ***** of **** ******* at ****** the company’s *** ***** *** new ******** rate ** ** **** ** ** *********** ******** rate * **** premium= 574% + *** ************** ****** ** ******** ** ********* 874% ** ************** bonds issued ** *** competitor ** ******* below *** since *** ****** **** ** ***** *** ********** ****** rates ********* **** *** *** * ***** that ** below par ** **** up for the ********** ******* *** ****** **** and *** ********** ******** **** *** ************** **** could be ******* ***** *** ** * ****** of *** *** ****** ****** ** ** ******* **** *** market *** * declining confidence ** ***** ***** Investors have ****** concerned over *** risk ** ***** *** ** **** corporate ******** **** have ******* major institutions ** *** **** decades *** ***** ***** of *** bonds indicates that *** ****** confidence ** *** bonds is on *** ******* Investors **** * ********* ********** ** *** *********** ***** as *** ****** has * higher **** premium **** **** ** *** ****** **** *** Telecommunication ************* ** * *** **** - Rf)WhereERi = Expected ****** ** ********** Rf * Risk-free **** *** * Beta ** the ********** *** * ******** ****** of ****** (ERm * Rf) * ****** **** premiumExpected rate ** ****** *** *** ****************** company ** ** follow:Eri= **** 065 ********* = ******* 00625%Eri= ************* ***** ****** ******** ********* **** ** ****** *** ****** ************** ***** ****** * *********** 6/ ************* share ****** ****** ********* share ***** ** ** ***** ** ****** **** the book ***** of ****** market ***** of the ****** ** ****** **** *** **** ***** ** *** ****** *** **** ***** ** *** since it ****** includes *** historical value ** the ****** ***** **** **** depreciated over time *** ****** ***** is higher ***** it ******** *** ******** ********** in *** ******* *** ****** ***** **** ********* *** ****** ******** ** *** company ***** *** **** value **** ********* *** ********** ******** iv Higher ******** *** ******* ******* ** grow ** a higher rate ** 75% it will **** ** reduce *** ******** ****** ***** *** *** ******* ******** ******** **** *** ******* **** **** ** reduce the ******** ****** ** *********** *** ********** growth *********** The ******** ****** **** ******** ** the *** ********* to *** **** ******* **** *** ******* **** be capable ** accommodating * ****** growth rate **** **** it ********* its ****** ****

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