looking for answers for the following problems with solutionsproblem 1 straight bonds abc corpor

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Problem 1: Straight Bonds: ABC Corporation plans to purchase an 8%, 15-year, P5,000,000 face value bonds. The entity would like to earn a minimum return of 10%. How much should ABC value and pay for the bonds? Problem 2: Serial Bonds: X Corporation is deciding whether to buy 200 pieces of 11%, P10,000 par value bonds of Triple A Corporation. They will be issued on Jan. 1, 2022. The bonds mature every year end over 5 years. How much should X offer to purchase the bonds so that it will earn 13%? Problem 3: Callable Bonds: On Jan. 1, 2021, Z Corporation paid P3,300,000 for a 9%, P3,000,000 face value bond. The bond pays interest every June 30 and Dec. 31, and is due on Dec. 31, 2028. However, Z foresees that the issuer will likely call the bonds on Dec. 31, 2026 for a call price of 103. As a financial analyst, you deem it appropriate to use a risk-adjusted return of 7% for Z's investment. Based on your analysis, how much did Z overpay or (underpay) for its investment? Problem 4: Ordinary Shares, no growth rate: The expected rate of return of the shareholders is 18%. The expected dividend to be received one year from now is P27. What should the value of each share be? Problem 5: Ordinary Shares, constant growth rate. The expected rate of return of the shareholders is 18%. The dividend per share was P27 last year. The growth rate of the share prices is 8%. There are 300,000 shares issued. How much is the total value of the equity?

          Problem 1: Straight Bonds: ABC Corporation plans to purchase an 8%, 15-year, P5,000,000 face value bonds. The entity would like to earn a minimum return of 10%. How much should ABC value and pay for the bonds?

Problem 2: Serial Bonds: X Corporation is deciding whether to buy 200 pieces of 11%, P10,000 par value bonds of Triple A Corporation. They will be issued on Jan. 1, 2022. The bonds mature every year end over 5 years. How much should X offer to purchase the bonds so that it will earn 13%?

Problem 3: Callable Bonds: On Jan. 1, 2021, Z Corporation paid P3,300,000 for a 9%, P3,000,000 face value bond. The bond pays interest every June 30 and Dec. 31, and is due on Dec. 31, 2028. However, Z foresees that the issuer will likely call the bonds on Dec. 31, 2026 for a call price of 103. As a financial analyst, you deem it appropriate to use a risk-adjusted return of 7% for Z's investment. Based on your analysis, how much did Z overpay or (underpay) for its investment?

Problem 4: Ordinary Shares, no growth rate: The expected rate of return of the shareholders is 18%. The expected dividend to be received one year from now is P27. What should the value of each share be?

Problem 5: Ordinary Shares, constant growth rate. The expected rate of return of the shareholders is 18%. The dividend per share was P27 last year. The growth rate of the share prices is 8%. There are 300,000 shares issued. How much is the total value of the equity?

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