Critical Thinking Assignment Valuation and Characteristics of Bonds Q- Compl

Critical Thinking Assignment
Valuation and Characteristics of Bonds

Q- Complete the following problems:
Problem 9.1: Bond Valuation
Problem 9.2: Yield to Maturity
Problem 9.3: Bond Valuation w/Semiannual Coupon Payment
Problem 9.4: Bond Valuation w/Zero Coupon Payment
Problem 9:5: Bondholder’s Expected Rate of Return
You can access the problem details by clicking on Valuation and Characteristics of Bonds in your course.
Complete the problems in an Excel spreadsheet (FIN500_Module09). Be sure to show all your work on the Excel spreadsheet to receive credit; no hard keys.
Learning Outcomes
Identify the basic process for valuing assets.
Identify the basics of bonds.
Calculate bond value and expected return.
Readings
Required:
Chapter 7 in Foundations of Finance – The Valuation and Characteristics of Bonds
Abdul Halim, Z., How, J., Verhoeven, P., & Hassan, M. K. (2019). The value of certification in Islamic bond offerings. Journal of Corporate Finance, 55, 141-161. Retrieved from https://doi.org/10.1016/j.jcorpfin.2018.09.002
Benlagha, N., & Mseddi, S. (2019). Return and volatility spillovers in the presence of structural breaks: evidence from GCC Islamic and conventional banks. Journal of Asset Management, 20(1), 72-90. Retrieved from https://doi.org/10.1057/s41260-018-00107-z
Recommended:
Chapter 7 PowerPoint Slides
Šeho, M., Bacha, O. I., & Smolo, E. (2020). The effects of interest rate on Islamic bank financing instruments: Cross-country evidence from dual-banking systems. Pacific Basin Finance Journal, in press. Retrieved from https://doi.org/10.1016/j.pacfin.2020.101292