Face Value Case Studies Samples For Students

Part I: a) Based on the above information, please calculate bond's price today.Bond Face value calculation formula

F=face value
C=Coupon Payment = F *contractual interest rate
N=number of payments
i= market interest rate
M= Value at maturity
P=Market price of the bond also known as the fair market value
F=200000 (face Value) ; C= 200,000*5%=50 ; N= 5; i= 4% ; M=200,000
So Bond’s Price today is = 10000((1-1.04^(-5))/ 0.04) + 200,000(1.04)^(-5) = $208,903 so the bond is undervalued. This makes it a great bond to but for any investor at face value.

Part I: b) What is the bond's price today if market rate is 6%?

F=200000 (face Value) ; C= 200,000*5%=50 ; N= 5; i= 6% ; ...

Two visits.

During the two visits, the Oceanics group should have investigated the management team of the manufacturer’s supply chain or other activities that relate to the flow of incoming materials required to complete the vessel. The Oceanics group should ensure that they find a manufacturer that has the essential materials either acquired or plan to acquire in order to produce the manufacturing of the vessel conforms to all the specifications. Efficient supply chain will ensure smooth movement of work between divisions without causing delay.
Another area of great concern that the Oceanics group should investigate is the engineering work ...

Part 2

The return will be computed using the yield to maturity formula. YTM captures all the relevant information in the valuation.
1)

Corporate bond

YTM = C+(F-P)/n(F+P/2
C is the coupon payment = 10.125% *1000 = 101.25
F is the face value = 1,000
P is the price = 879.625
N is the periods to maturity = 25
YTM = 101.25+(1,000-879.625)/25(1000+879.625)/2 = 11.6%

Government Bond

YTM = C+(F-P)/n(F+P/2
C is the coupon payment = 6.825% *1000 = 68.25
F is the face value = 1,000
P is the price = 975.42
N is the periods to maturity = 25
YTM = 68.25+(1, ...

ANALYSIS OF ISLAMIC BOND (SUKUK) MARKET OF DUBAI AND MALAYSIA

Analysis of Islamic Bond (Sukuk) Market of Dubai and Malaysia
Introduction
As the business has expanded all across the world due to rise of internalisation or globalisation, it has become necessary that both the sources of equity and debt capital must be obtained for financing operational activities. In this regard, experts in financial management designed different modes of finance in which issuance of bonds, in case of debt management, forms an integral position. However, these conventional form of bond issuance require trading based on interest rates and are not backed by any security.
Therefore, based on Islamic principles, a ...

1. What is the value of Calaveras Vineyards? Is the proposed purchase price for Calaveras Vineyards appropriate?

The current management of Calaveras Vineyards is looking to acquire the company from its current owner Stouts PLC. To do so, the proponents are seeking a $4.5 million loan and a revolving credit. Goldengate Capital was asked by NationalBank Investments to participate in the syndicated loan, providing $2 million in debt and a revolving credit amounting to $2.5 million.

Stout PLC’s books indicates a value of $ 7 million for Calaveras Vineyard and a fair market appraisal has put the company’s asset value somewhere between 5 ...

Abstract
Shelter is one of the basic human necessities. Provision of decent-quality and affordable housing is one challenge that various authorities have been faced with, and Sheffield is not left behind. Though she has surpassed her average annual housing needs, Sheffield is still struggling to mitigate housing problems. This research project reviews the use of Geographic Information System (GIS) in Sheffield’s housing and how education level affects the adoption of GIS in affordable housing initiatives. In order to achieve this objective, the current state of Sheffield’s housing is exhaustively considered. Using the boundary data from EDINA ...