Looking for some serious help in Financial Management assignment. I needed honest and willing to meet my dead line. Instruction as following questions using grammatically correct language and appropriate APA citations. All questions need to be answer and with APA citations. All material MUST come from the book only. (The book that used is Finance by Cornett, Adair, & Nofsinger, 2016). Chapter 7 Valuing Bonds, Pages 160-189 this chapter covers bond features and types of bon, bond valuation, bond pricing and how interest rates affect bond prices and Chapter 8 Valuing stocks, page 190-215. This chapter covers various components of stock returns and stock valuation.. There are some hints/suggestions for certain questions in this assignment
Note: In addition to your solution to each computational problem, you MUST show the supporting work leading to your solution to receive credit for your answer.
Question 1:
Proficient-level: "What does a call provision [call feature] allow [bond] issuers to do, and why would they do it?" (Cornett, Adair, & Nofsinger, 2016. p. 184).
Distinguished-level: State what additional compensation is paid, in addition to the bond principal, when a bond is called.
Question 2:
Proficient-level: "Provide the definitions of a discount bond and premium bond. Give examples" (Cornett, Adair, & Nofsinger, 2016, p. 184).
Distinguished-level: Explain why market interest changes are reflected in bond prices.
Question 3:
Proficient-level: "Describe the differences in interest payments and bond prices between a 5 percent coupon bond and a zero coupon bond" (Cornett, Adair, & Nofsinger, 2016, p. 184).
Distinguished-level: Given a change in market interest rates, determine which of the two bonds would remain closer to its par value.
Question 4: HINT-The correct price (present value) of the bond will fall between the range of $470.00 and $479.99. (REMINDER you are also required to identify the known variables use.
Proficient-level: "Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 3.8 percent" (Cornett, Adair, & Nofsinger, 2016, p. 185).
Assume semi-annual compounding.
Distinguished-level: State why zero coupon bonds are sold at steep discounts.
Question 5: HINT- The correct price (present value) of the bond will fall between the range of $690.00 and $699.99 (REMINDER you are also required to identify the known variables used.
Proficient-level: "Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 6.8 percent" (Cornett, Adair, & Nofsinger, 2016). Assume interest payments are paid semi-annually, and solve using semi-annual compounding.
Distinguished-level: Explain why the bond is either a discount bond or a premium bond.
Question 6: HINT- The correct yield to maturity (I) of the bond will fall between the range of 5.00% and 5.99%. BE SURE TO SOLVE AND SHOW RESPONSE OUT TO FOUR DECIMAL PLACES AS I HAVE SHOW IN THE RANGES AMOUNTS. REMINDER YOU ARE ALSO REQUIRED TO IDENTIFY THE KNOWN.